AUD/USD Outlook: Aussie Cracks Psychological 0.70 Level En-Route To Key Barrier At 0.7032

Technical analysis of Forex market

The Australian dollar cracked psychological 0.70 barrier on Friday, in extension of steep bullish acceleration this week (the pair is on track for weekly gains of nearly 5%). Bulls approach key barrier at 0.7032 (31Dec 2019 high) and break here would open way for extension of recovery of 2017/2020 bear-phase (0.8135/0.5509) towards its Fibo 61.8% retracement at 0.7132.

Probe above weekly cloud top (0.6969) adds to positive signals which require confirmation on weekly close above the cloud.

Bulls may face strong headwinds from 0.7000/32 resistance zone and may consolidate/correct before resuming as overbought daily studies and long upper shadows on Wed/Thu daily candles suggest. Traders await today’s US jobs data for fresh signals but eye next week’s RBA meeting and a batch of important Australian economic releases. Weekly cloud base (0.6853) marks solid support which is expected to limit potential dips and keep focus at the upside.

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Res: 0.7000, 0.7012, 0.7032, 0.7082
Sup: 0.6930, 0.6904, 0.6881, 0.6853