- Risky assets are better bid after EU migration deal.
- The AUD is reporting gains and a positive close today would confirm a bullish-relative strength index (RSI) divergence.
The AUD/USD will likely close on a positive note today, confirming a bullish price-relative strength index (RSI) divergence.
The Aussie and other risk assets picked up a bid in Asia after the European Union’s (EU) Donald Tusk informed markets that European leaders reached an agreement on migration.
At press time, the AUD/USD pair is trading at 0.7375, having clocked a session high of 0.7386 and looks set to rise further as the S&P 500 futures are reporting a 0.4 percent rise – meaning the markets are likely to stay risk-on through Europe and into US session.
So, the Aussie will likely close on a positive note, confirming a positive bullish RSI divergence on the daily chart. The confirmation of price-RSI divergence would indicate a short-term bearish-to-bullish trend reversal, i.e. sell-off from 0.7677 (June 6 high) has ended.
AUD/USD Technical Levels
Resistance: 0.7385 (10-day moving average), 0.7444 (June 22 high), 0.7515 (50-day moving average).
Support: 0.7358 (50-hour MA), 0.7323 (recent low), 0.73 (psychological support).
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