- AUD/USD rallied around 60 pips in the last hour and jumped back closer to session tops.
- The set-up seems tilted in favour of bullish traders and support prospects for further gains.
The AUD/USD pair quickly reversed a mid-European session dip to the 0.5865 region and rallied around 60 pips in the last hour, back closer to the top end of its daily trading range.
Given that the pair has managed to find acceptance above 100-hour SMA, the near-term set-up seems tilted in favour of bulls and supports prospects for a further appreciating move.
A sustained move beyond 38.2% Fibonacci level of the 0.6686-0.5509 recent slump, around the 0.5975-85 region, will add credence to the near-term bullish outlook for the major.
The pair then might surpass the key 0.60 psychological mark and aim towards the 0.6030 intermediate resistance before eventually darting to 50% Fibo., around the 0.6090 region.
On the flip side, any meaningful pullback might continue to attract some dip-buying and seems more likely to remain limited near the 0.5865-55 strong horizontal support.
Any subsequent slide could get extended towards the 0.5800 mark (100-hour SMA), which if broken might negate the constructive set-up and prompt some fresh technical selling.
AUD/USD 1-hourly chart
Technical levels to watch