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  • Risk-on continues to power gains in AUD/USD
  • The hourly chart suggests potential for a stronger rally above 0.64.

AUD/USD continues to gain altitude with risk reset triggered by renewed hopes of coronavirus treatment overshadowing China’s first-quarter gross domestic product decline, its first economic contraction since 1992. 

The pair is now trading near 0.6370, representing a 0.67% gain on the day, having hit a session high of 0.6385 early Friday. 

The spot could rise further above 0.64, as the hourly chart is reporting a failed rising wedge breakdown, which is widely considered a strong bullish signal. Further, the chart shows an inverse head-and-shoulders breakout and strong bounce from the ascending 200-hour average. The daily chart relative strength index is also reporting bullish conditions with an above-50 print. 

On the downside, 0.6264, the low of Thursday’s long-tailed candle, is the level to beat for the bears. 

Hourly chart

Trend: Bullish

Technical levels