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AUD/USD: Technicals favour upside, political situation in focus - FXStreet

According to Valeria Bednarik, Chief Analyst at FXStreet, despite the potential hung parliament in Australia, the technical picture in the AUD/USD in the 4 hours chart favors the upside, with 0.7510 being the immediate resistance, which if overcome, may open the doors for 0.76.Key QuotesHaving corrected half of its post-Brexit losses, the pair failed to rally beyond the 0.7500, but held nearby at the end of the week, increasing chances of a bullish breakout. Also supporting the Australian currency are gold prices, as spot neared the year high posted on Brexit's results.The daily chart shows that the pair rallied from the 38.2% retracement of this year´s decline on Friday at 0.7450, while its also advancing beyond its 20 SMA, although this last, lacks directional strength. In the same chart, the technical indicators hold within positive territory, with the RSI indicator anticipating some further advances as per heading higher around 56.In the shorter term, and according to the 4 hours chart, technical readings also favor the upside, as the 20 SMA presents a strong upward tone and nears the mentioned Fibonacci support, whilst the technical indicators head modestly higher within positive territory. The post-Brexit high was set at 0.7510, the immediate resistance and the level to overcome to see the rally extending up to the 0.7600 region, the 23.6% retracement of the mentioned yearly rally.



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