AUD/USD stays underpinned on the week but is running into some key resistance levels currently
The pair is resting under the 0.6900 level after a strong run higher in overnight trading as markets are keeping more tentative on the day so far. But there's also the fact that the pair is running into a couple of key resistance levels at the moment:
1) Trendline resistance from July to October @ 0.6871 (trading above)
2) Trendline resistance from April to July @ 0.6890 (trading below)
3) Trendline resistance from December to April @ 0.6876 (trading above)
4) 200-day MA (blue line) @ 0.6911 (trading below)
It's a bit of a mixed situation and if you factor in offers around 0.6900, there's still much work for buyers to do in order to establish more upside momentum from hereon.
That said, trading sentiment in the pair will also largely hinge on what Trump decides on the 15 December tariffs. As such, price action may be left a bit more paralysed for now.
But from a technical perspective, watch out for those levels above - especially the 200-day MA. If we do get a daily close above that, it will be the first since March 2018 and may spur buyers to build on a technical run to the upside.
