AUD/USD: recovery is still seen as corrective on 4hr chart - FXStreet

Valeria Bednarik, chief analyst at FXStreet, explained that the AUD/USD pair could extend its advance on a short-term basis, as the technical indicators in the H1 chart are heading higher.

Key Quotes:

"The AUD/USD pair regained the 0.7500 level by the end of the US session, in spite of discouraging Australian data released at the beginning of the day. Consumer Inflation Expectations for September from the Melbourne Institute, weakened for a second consecutive month, down to 3.3% from previous 3.5%. Australian August employment data, seasonally adjusted, showed that the unemployment rate fell to 5.6% while the employment change missed expectations, down by 3.9K against expectations of a 15K rise. The participation rate shrank to 64.7% from previous 64.9%.

The pair however, held above the 0.7450 critical support area, and extended up to 0.7519, underpinned by US indexes' recovery, trimming most of its weekly losses. Short term, the pair is poised to extend its advance, as in the 1 hour chart, the technical indicators are heading higher near overbought territory, while the price is advancing well beyond a modestly bullish 20 SMA. In the 4 hours chart, the recovery is still seen as corrective, as despite the price is now above a horizontal 20 SMA, technical indicators have lost upward strength within negative territory. The weekly high stands at 0.7567, the level to surpass to confirm another leg north."