AUD/USD to soar past 0.7700 next week

FX

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The AUD/USD pair surged to 0.7639, a level that was last seen in June 2018, holding on to its gains as the week comes to an end. The aussie will extend its positive momentum next week as overbought conditions still short of granting a correction, according to FXStreet’s Chief Analyst Valeria Bednarik.

Key quotes

“Winter holidays are starting in the Northern hemisphere, which means that the next two weeks will be light in terms of macroeconomic releases. The focus will remain on Brexit and US stimulus, which can trigger some wild movements in thinned markets.”

“The AUD/USD pair has room to extend its advance, according to technical readings in the weekly chart. It has further advanced beyond all of its moving averages, and the 20 SMA is currently crossing through the 200 SMA, both around 0.7249. The Momentum indicator heads north within positive levels, although with limited strength. The RSI indicator, however, approaches overbought readings.”

“If the aussie breaks above 0.7640, the next possible bullish target is 0.7710, en route to 0.7770. Bulls will remain in control as long as the pair holds above 0.7500, with a break below this last, favoring a slide towards 0.7430.”

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