AUDUSD Looks Set For More Gains

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The Aussie dollar was seen trading higher recently against the US dollar, as the latter one got weakened across the board. The AUDUSD pair gained traction and cleared an important resistance area around the 0.7850 level, which might now turn into a support area in the near term. Let us see how the pair trades in the short term and whether it can surge higher or not. Earlier during the Asian session, the Australian Conference Board Australia leading Index, which measures future trends of the overall economic activity including employment, average manufacturing workweek and initial claims was released by the Conference Board. There was no change from the previous gain of 0.4%.

There is a major bullish trend line formed on the hourly chart of the AUDUSD pair, which might act as a hurdle if the pair moves lower from the current levels. The 23.6% fib retracement level of the last leg from the 0.7660 low to 0.7900 high is also sitting around the same trend line. The hourly RSI is heading towards the 50 level. So, a lot of things are aligning for a major support around the 0.7850 level. Let us see how the Aussie dollar buyers react when it reaches around the mentioned fib level. The AUDUSD pair is well above the 200 and 100 hour moving averages, which is a positive sign.

AUDUSD 03.24.2015

If the AUDUSD pair moves higher from the current levels, then a retest of the recent high at 0.7900 is very likely in the short term.

Overall, one might consider buying dips in the AUDUSD pair as long as it stays above the highlighted trend line.

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