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AUD/USD Forecast: About To Challenge This Month High, Bullish

Valeria Bednarik - Chief Analyst at FXStreet

AUD/USD Current Price: 0.6518

  • Gold and oil prices soared amid increased demand for China and more stimulus hopes.
  • Wall Street rallied amid progress related to a coronavirus vaccine.
  • AUD/USD about to challenge this month high, bullish.

The AUD/USD pair has climbed steadily ever since the day started, to reach a daily high of 0.6518, holding nearby as the US session comes to an end. The Aussie found support in rallying oil prices and gold prices, with the first underpinned by news indicating that Chinese oil demand is almost back to pre-virus levels. Gold, on the other hand, soared to fresh multi-year highs as central bankers continued to hint additional stimulus measures likely in the near future. The substantial rally in US equities resulting in broad dollar’s weakness, maintained the pair rallying in the last trading session of the day. Early Tuesday, the RBA will publish the Minutes of its latest meeting.

AUD/USD Short-Term Technical Outlook

The AUD/USD pair is heading towards 0.6569, the high posted in April. The short-term picture supports a continued advance, as, in the 4-hour chart, technical indicators maintain their bullish slopes near overbought readings. Additionally, the pair has settled above all of its moving averages, which head higher with uneven strength. Beyond the mentioned monthly high, the next relevant resistance is the 0.6600 level, with a break above this last opening the doors for a continued advance during the upcoming sessions.

Support levels: 0.6480 0.6455 0.6420

Resistance levels: 0.6530 0.6570 0.6600

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