AUD/USD 0.36% extends stellar 9.90% rally, hits fresh 4-month high
US dollar -0.28% on the back foot after Treasury Secretary Steve Mnuchin said that a weaker USD is good for the US.
A close above monthly 200-MA of 0.8060 will propel the pair higher, scope then for test 2017 highs at 0.8125
Strong performance of key commodities like gold 0.49% and copper 0.33% likely to keep the Aussie supported.
Technical studies also support further upside in the pair. Price action extends in rising channel pattern.
Next major resistance lies at 0.8125 (2017 highs) ahead of channel top at 0.8220 levels.
Breakout at channel top along with close above 200M SMA could see fresh highs.
Support levels - 0.8061 (200M SMA ), 0.8031 (5-DMA), 0.80
Resistance levels - 0.8125 (2017 high), 0.8166 (50% Fib retrace of 0.9505 to 0.6827 fall), 0.8220 (channel top)
Good to go long on dips SL: 0.80, TP: 0.8125/ 0.8170/ 0.82
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