AUD/USD: Rebound to extend on a cross above key resistance zone at 0.6810/0.6850 – SocGen

AUD/USD is approaching key hurdle of 0.6810/0.6850. Economists at ociété Générale analyze the pair's technical outlook.

Defence of the 200-DMA near 0.6690 would be crucial for persistencein up move

Daily MACD has been posting positive divergence denoting receding downward momentum.  

The pair has recently reclaimed the 200-DMA; it is worth noting that it had similar breaks above this MA in April/May however the upward momentum failed to regain. Thus, defence of this MA near 0.6690 would be crucial for persistence in up move. 

AUD/USD is approaching the peak achieved in April near 0.6810/0.6850; this remains a key resistance zone. If the pair establishes above this hurdle, the rebound is likely to extend towards 0.6910 and perhaps even towards 0.7000, the 76.4% retracement from February.