- AUD/USD has erased a significant chunk of losses seen in the first quarter.
- Aussie is eyeing the 50-day average hurdle after Wednesday’s bullish close.
AUD/USD is just 12 pips short of erasing 50% of the sell-off from the Jan. 2 high of 0.7016 to the March 19 low of 0.5506.
The spot is trading near 0.6249 at press time, representing a 0.25% gain on the day, and looks set to test the 4-hour chart 200-candle average at 0.6256. That would be the first test of the key average hurdle since March 9.
Bullish close
AUD/USD rose by almost 1% on Wednesday, confirming a three-day winning streak. More importantly, the pair printed closed Wednesday above 0.6214 (March 31 high), invalidating a lower high setup and validating the higher low of 0.5980 created on April 3.
The spot had turned lower from 0.624 on March 31.
The bullish daily close has opened the doors for the 50-day average hurdle located at 0.64 at press time.
The outlook would turn bearish if and when the Aussie dollar violates the higher low set up with a drop below the April 3 low of 0.5980.
Daily chart
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Trend: Bullish
Technical levels
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