AUD/USD Price Forecast: Bulls test SMA cluster with 0.7100 in sight

Back above 0.7000, AUD/USD adds to weekly gains and tests key resistance.
A cluster of SMAs confronts buyers, with further gains dependent on clearing 0.7074.
A breach of 0.7100 would bring 0.7150 and the September peak of 0.7237 into view.

Gains of over 0.22% on Friday left the Australian Dollar more than 1.20% higher for the week. Having regained 0.7000, AUD/USD is now poised to challenge a cluster of key resistance levels in the 0.7000-0.7100 range. The pair stands at 0.7035 at the time of writing.

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AUD/USD Price Forecast: Near-term bias turns bullish

The advance from around 0.6900 in mid-October to current levels has shifted the near-term bias for AUD/USD to bullish. Expectations of another interest rate rise by the Reserve Bank of Australia (RBA) before next year have supported the Aussie, alongside the favourable technical backdrop.

The principal technical hurdle for buyers is the cluster of 100-, 50- and 200-day Simple Moving Averages (SMAs), which stand at 0.7033, 0.751 and 0.7074, respectively. Clearing this area could pave the way for a move towards 0.7100.

Further gains would bring the psychological 0.7150 level into focus, ahead of the daily high of 0.7237 recorded on 9 September. A break above the latter would open the way to the year-to-date (YTD) peak of 0.7277.

For AUD/USD, initial support on the downside lies at 0.7000. A break below it would shift attention to the cycle low of 0.6894 reached on 15 October.

AUD/USD Daily Price Chart

Australian Dollar Records Its Strongest Weekly Gain Against the US Dollar

Against the major currencies listed below, the Australian Dollar (AUD) posted its strongest performance this week versus the US Dollar. The table sets out its percentage changes against each currency.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.15%	-0.46%	-0.77%	-0.81%	-1.12%	-0.74%	-0.14%
EUR	0.15%		-0.31%	-0.56%	-0.61%	-0.88%	-0.58%	0.03%
GBP	0.46%	0.31%		-0.25%	-0.30%	-0.56%	-0.26%	0.41%
JPY	0.77%	0.56%	0.25%		-0.05%	-0.35%	0.02%	0.75%
CAD	0.81%	0.61%	0.30%	0.05%		-0.29%	0.09%	0.71%
AUD	1.12%	0.88%	0.56%	0.35%	0.29%		0.30%	0.94%
NZD	0.74%	0.58%	0.26%	-0.02%	-0.09%	-0.30%		0.66%
CHF	0.14%	-0.03%	-0.41%	-0.75%	-0.71%	-0.94%	-0.66%

Percentage movements between the major currencies are displayed in the heat map. Select the base currency in the left-hand column and the quote currency in the top row. Selecting the Australian Dollar on the left and following that row across to the US Dollar, for instance, gives the percentage change for AUD (base)/USD (quote) in the corresponding cell.