Technical Analysis

AUD/USD inches higher on the session and closer towards key near-term levels

AUD/USD pushes higher as the risk mood is seen improving on the session

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European equities are now slightly higher, with US futures coming close to pare losses on the session with E-minis down by just 0.1% now after the turnaround in the risk mood.

This is keeping the aussie a little higher at the moment, with AUD/USD touching a high of 0.6885 and coming close to testing its key near-term levels again.

Notably, price action is closing in on a test of the 200-hour MA (blue line) @ 0.6887 with the 100-hour MA (red line) not far away @ 0.6894.

Keep below that and the near-term bias stays more bearish, though swing region resistance close to 0.6850 remains a tough spot for sellers to break through for now.

But break back above the key near-term levels above, and buyers will start to seize back more control and look towards the 0.6900 level again.

The AUD/USD chart is largely a mirror of the S&P 500 so expect the price action in the pair to follow the stock market index rather closely ahead of the weekend.

Much like how the S&P 500 topped off at around its 16 June high at 3,153, AUD/USD also failed to breach its 16 June high @ 0.6977 earlier in the week and retraced lower.

In that regard, US coronavirus figures will once again be a key spot to watch but also be wary of any possible reaction by states to deal with the rising cases and hospitalisations. The market may be a little more cheery now but there is still caution to be heeded.

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