The Australian dollar bulls are back in town, but for how long? – Resistance (cap) is seen ahead at US$0.6765-75

February 13, 2020 - 2 weeks ago
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Since the bulls noticed the presence of bullish divergence viewed from the 3-day RSI and the MACD on the daily chart, has strengthened the upside momentum further, since the AUD/USD pair rebounded from the near-term bottom at US$0.6660-65.

With signs of a slowdown in the number of new cases of COVID-19 (coronavirus) has also helped the advance after the intraday session posts an intraday high of US$0.6749.

Furthermore, the Westpac Consumer Confidence Index improved in February by 2.3% to 95.5. The index, however, is still down from a year earlier and while below 100, indicates that confidence remains weak.

Later today, the RBA Governor Philip Lowe will participate in a panel discussion, then on Friday, Australia will publish February Inflation Expectations, foresee at 4.3%, after printing 4.7$ in January.

Looking ahead, the bulls still have their work cut out as there remains the supply zone viewed above at US$0.6765-75, to which could see a potential reversal.

Conversely, a decisive break of the critical support level at US$0.6660, would expose the region of US$0.6400, viewed from a broader aspect.

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