Technical Analysis: AUDUSD looks promising for 100-pip upside

Technical Analysis: AUDUSD looks promising for 100-pip upside

Despite recently easing from the yearly high, AUDUSD stays well beyond the 50-day SMA, not to forget being inside the ascending triangle, amid the absence of overbought RSI conditions. As a result, the buyers are hopeful of crossing January’s peak near 0.7820, which in turn enables the optimists to eye 61.8% Fibonacci Expansion (FE) level around 0.7910 during the further upside. It should, however, be noted that the quote’s upside momentum past-0.7910 will not hesitate to challenge the 0.8000 threshold.

On the downside, pullback moves may eye the 0.7700 round-figure but even the short-term bears may remain cautious until witnessing a clear downside break of 50-day SMA, currently around 0.7660. Also acting as the key support is a convergence of the ascending trend line from November 13, forming part of the stated triangle, as well as 23.6% Fibonacci retracement of November-January upside, around 0.7630-25. Overall, AUDUSD benefits from the market optimism backed by the vaccine optimism and hopes of US stimulus, which in turn highlights it for the bulls.

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