AUDUSD Rallies to the Highest Level in Three Weeks Past 0.7400

AUDUSD Price Analysis – September 2

For the third day in a row, the Australian dollar rose to new multi-week highs. The AUDUSD exchange rate continued to rise, reaching 0.7409, its highest level since August 5. Presently it’s hovering past 0.7400. The dollar index, or DXY, is down 0.25 percent, trading at 92.25, its lowest level in a month.

Key Levels
Resistance Levels: 0.7645, 0.7557, 0.7450
Support Levels: 0.7350, 0.7289, 0.7189
AUDUSD Long term Trend: Ranging
The advance over a crucial horizontal support breakpoint turned resistance, around the 0.7340 zones past the daily moving average 5, which was considered as a key trigger for bullish traders, according to the technical picture. As a result, the AUDUSD pair was able to build on its recent robust comeback from the 0.7100 level.

Nevertheless, technical indicators on daily charts are already indicating that the market is going towards the overbought region. As a result, any further gains above the 0.7400 round-figure barriers are likely to face heavy opposition and be limited near the 0.7426 support zone. A congestion zone’s top boundary is marked by the mentioned region.
AUDUSD Short term Trend: Ranging
On the other hand, oscillators on the 4-hour chart reached the overbought zone and continue to gather positive traction, implying that further rises are possible. A prolonged surge towards the 0.7426 range will reaffirm the outlook and cause a new round of short-buying, bringing the AUDUSD pair closer to the crucial 0.7500 psychological level.

On the other hand, any major pullback currently appears to find solid support near 0.7350 around the 4 hour MA 13. Then there’s the 0.7300 round level, which, if violated strongly, might tip the scales in favor of bearish traders. The AUDUSD pair’s corrective decline into the 0.7289 horizontal zones could accelerate if bulls fail to hold.

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