AUD/USD bounces off the lows but topside momentum continues to stall
AUD/USD finds support from the 100-hour MA again
Friday's break out to the topside was surely short-lived as the aussie's struggles so far this year remains a familiar story. The spike on Friday in AUD/USD saw it move towards the 200-day MA (blue line) but as it fell short, the pair retreated and closed the day below the 100-day MA (red line) as well.
But the key to the upside momentum is looking at the near-term charts. On the hourly chart in particular, the pair continues to hold up above the 100-hour MA - indicating a bullish bias still. That will be a key level for buyers to maintain if we are to see a retest of the daily levels mentioned above.
Despite the upbeat Q1 China GDP data, the aussie remains subdued as the RBA minutes serve as a reminder as to why the aussie remains so fragile.
For the rest of the day, there isn't any major data that will influence price action in the pair so do watch out for any risk moves or follow-through sentiment on the dollar following Trump's tweet yesterday.
To the downside, the 100-hour MA @ 0.7767 remains key. After which the next support level lies at the 12 April low of 0.7738 and then the 200-hour MA @ 0.7734.
As for the upside, resistance levels sit at the 100-day MA @ 0.7794 and the 200-day MA as well as the 50.0 retracement level on the daily chart @ 0.7817 and 0.7819 respectively.