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AUD/USD: Breaks through one-week-old resistance in risk-on trading

australian-dollar-bank-notes- AUD

US stimulus talk optimism boosts the market mood. AUD/USD hits daily high trading at 0.7080 in early trade on Wednesday. AUD/USD recently broke above a descending trend line from October 14 and 100-HMA amid bullish MACD. Optimism that additional US fiscal stimulus will be agreed helped to boost the risk sensitive pair..

 Sustained trading above the  resistance , helps AUD/USD buyers to target another descending trend line at 0.7100.

However, a 200-HMA level of 0.7135 could limit further upside past-0.7100.

A break below resistance  at 0.7070 will open the door to an immediate support line at 0.7050.

An upward sloping trend line from June, near 0.7045, could also challenge buyers, a break through here could see a south-run towards the 0.7000.

 

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