AUD/USD hits fresh highs but remains below 0.7100

• AUD/USD rebounds after finding again support at 0.7055. 
• Aussie recovers as Wall Street indexes trim losses, easing pressure on EM and commodity currencies. 

The AUD/USD printed a fresh daily high recently at 0.7089 and near the end of the session was holding close to the top, with a modest bullish tone. Previously the pair dropped during the session to challenge the 0.7055 support but held on top and rose toward 0.7100. 

The move lower took place amid negative market sentiment on a global sell off in equity market but then indexes recover and helped the pair move to the upside. Also the 60-pips rally in AUD/JPY from the October low added some support for AUD/USD.

Technical outlook 

Valeria Bednarik, Chief Analyst at FXStreet explained that despite today’s gains, the pair is still below the 23.6% retracement of its October decline at around 0.7090, the immediate resistance and in the 4 hours chart, also below bearish moving averages. 

“Technical indicators have lost their bearish strength, bouncing modestly but still within negative ground, falling short of confirming a bullish extension ahead. The upside will look more constructive on an advance beyond the weekly highs in the 0.7120 price zone”, Bednarik added.