AUD/USD to extend its advance towards 0.7480 on a break above 0.7315 – SocGen

AUD/USD advances for the third day. The pair faces initial resistance at 0.7315. Above here, the aussie could extend its rise towards the last month high of 0.7480, economists at  Société Générale report.

First hurdle at 0.7315

“AUD/USD has carved out a higher trough at 0.7170 as compared to the one in August at 0.7110. It has formed a tweezer bottom at this level. This formation is characterized by similar lows on two consecutive sessions and denotes a rebound.”

“Holding above 0.7170, AUD/USD could attempt a bounce towards 50-DMA at 0.7315. If this is overcome, the pair could extend the up move towards a multi month descending trend line at 0.7375 and last month peak of 0.7480.”