AUDUSD: Strong Resistance Ahead at 0.6973
The Aussie dollar started the week higher at 0.6956 registering gains for fifth straight session amid USD weakness. AUDUSD hit the low at 0.6830 the previous week but managed to rebound after FED opened the door for interest rate cuts before the end of the year. Aussie economy is at risk from heightened global uncertainty due to trade war between China and USA. Economist’s have increased bets of a Reserve Bank of Australia interest rate cut as soon as July.
Australian dollar currently trading close to daily high as the short term positive momentum is still intact. The pair now will face the important 0.6973 key 50 day moving average resistance which if breached can extend the rebound to 0.7045 and the 100 day moving average. On the downside first support stands at 0.6926 the 50 hour moving average, while more bids will emerge at the 100 hour moving average at 0.69.