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The AUD/USD pair came close again this week, pulling up to 0.7806 on Thursday just shy of the three-year high of 0.7820 from January 6. Friday’s pullback to support at 0.7700 may be a sign that profit-taking is underway on the very steep ascent from the beginning of November, according to FXStreet’s Analyst Joseph Trevisani.

Key quotes

“The potential for a profit-taking drop in the AUD/USD to support at 0.7535 is relatively high, particularly if US interest rates continue to rise.”

“The area down to 0.7550 is vulnerable to profit-taking but below that, the support is firm and substantiated by fundamental trends.”

“The steep and almost unbroken rise in the AUD/USD in the last two months has made the 21-day moving average into a nearly parallel line to the upward channel and at 0.7678 it backs support at 0.7675. The 100-day average at 0.7345 and the 200-day at 0.7092 are well-beyond likely profit-taking range.”