The Australian Dollar (AUD) is poised to end Friday’s session flat against the US Dollar (USD), even though an improvement in market mood drove the Greenback toward four-week lows near 98.52, according to the US Dollar Index (DXY). Hopes that the US-Iran talks over the weekend could open the door for further discussions to lay a deal may push AUD/USD higher, past 0.7100, clearing key resistance at Thursday's high of 0.7094. At the time of writing, the pair trades around 0.7070.
AUD/USD Price Forecast: Technical Outlook
On its way north, AUD/USD cleared April’s 1 high past 0.6962, but fell shy of cracking the 20-day Simple Moving Average (SMA). Finally, on Tuesday, buyers reclaimed 0.6978 —the 20-day SMA—and crushed 0.7000 as the pair was on its way toward weekly highs reached the next day.
Despite this, buyers ran out of steam and failed to overcome the 0.7100 figure, which is seen as the next key resistance level, before traders aim towards the March 11 year-to-date (YTD) high at 0.7187. On further strength, 0.7200 is up next.
On the downside, AUD/USD must drop below the 50-day SMA at 0.7026, so traders can remain hopeful of challenging 0.7000. On further weakness, the next stop would be the 20-day SMA at 0.6978, followed by the April 6 swing low of 0.6875.
AUD/USD Price Chart – Daily
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