AUD/USD: upside favoured towards 0.7720 - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the AUD/USD pair topped at 0.7715 during the past Asian session, when the release of the Australian Westpac Melbourne Institute Index of Consumer Sentiment took it down, after falling by 4.0% in April from 99.1 in March to 95.1. 

Key Quotes:

"The downward correction in crude oil prices also weighed on the Aussie as it dragged down all of the commodity-related currencies. The pair fell down to 0.7633 during the American session, but managed to bounce some ahead of the close, indicating a limited downward potential in the short term.

Technically, the 1 hour chart shows that the price remains below a bearish 20 SMA, whilst the technical indicators head nowhere within negative territory.

In the 4 hours chart, however, the technical picture favors the upside, given that the price is holding above a bullish 20 SMA, currently around 0.7620, and the immediate support, while the RSI indicator resumed its advance around 56 and the Momentum indicator also heads north well above its mid-lines. At this point, the pair needs to break above 0.7720, this year high set last March, to actually recoup its bullish momentum and approach the 0.8000 region."