- AUD/USD is trading 0.50% higher on Monday with only the EUR performing better from the G6.
- The market has hit some resistance at the 0.6981 level.
AUD/USD 4-hour chart
AUD/USD is performing very well on Monday as the global risk appetite for equities improved. Whenever stocks are performing well the AUD seems to rise too and overnight the commitment from the Chinese government to the economy would have helped the AUD to catch a bid.
Looking at the chart, the pair seems to be struggling at the blue resistance line at 0.6975. Just as it looked like the pair was about to test the psychological 0.70 area it stopped just short. Beyond that, the next resistance is at the high on the chart of 0.7064.
On the downside, if the price does decide to move lower, the top or apex of the pattern the pair burst out of could be tested again. This could take the price back to around 0.69 and the area has been pretty sticky in the past.
Looking at the indicators, the Relative Strength Index has just pulled away from the overbought zone. This could mean the price was overstretched and due a pullback before rising again. The MACD is looking very bullish at the moment with the signal lines above the mid-point and the histogram in the green.
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