The Australian Dollar staged an impressive comeback on Friday and rose from fresh (nearly) two-year lows to three-day highs, as the greenback came under sudden selling pressure later in the day. The daily candle now looks somewhat positive, suggesting that Friday’s breakdown to new lows was only a bearish trap and the price could move higher over the next few days.
The AUDUSD pair was trading at 0.20 per cent higher on Monday morning and was hovering near the 0.71 handle.
While the pair is trading above the previous bottom of 0.7050, the intraday outlook looks bullish. Bulls also managed to conquer another resistance near 0.7090, which could be the immediate support for today’s trading.
On the upside, the resistances could be at the well-known levels of 0.7130 and the 0.7150 barrier, where previous lows and highs converged with the critical bearish trend line. Jumping above could cause a bigger relief rally, as this year’s bearish trend could most probably be over.
However, commodities and especially metals, are all trading lower on Monday, which is a negative factor for the Australian Dollar and might bring the AUDUSD pair back down later in the day.
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