AUD-USD Looks Bullish Short Term

By: Mike Kulej
Following a large sell off last week, the AUD-USD has been gaining ground over last few days. This appreciation is not as fast as the preceding drop, but is taking place in a steady pace. The current advance is characterized by higher highs and higher lows made on relatively small price swings.

So far, the AUD-USD has gained about 250 pips. It is not enough to call a major reversal, not yet at least, but the short-term chart looks positively bullish. The hourly graph shows a well defined up trend, which follows the trendline very closely. At 0.8325, this pair is above the 100 SMA, which is also a bullish sign for this chart.

The MACD is in a positive territory as well and the reading is moderate, not indicating oversold conditions. The just released Australia’s unemployment was at 5.2% in May, lower than expected, thus positive for the AUD and supportive of this bullish trend.

A move above 0.8355 could take the AUD-USD to 0.8470, the next resistance. As long as the price remains above its tight trendline, the short-term bullish trend is valid.