Probing key resistance at 0.7003 for second day

  • AUD/USD is chipping away at the resistance at 0.7003.
  • With stocks flashing gains and technicals biased bullish, the pair looks set to scale the key hurdle.

AUD/USD is struggling to beat the former support-turned-resistance of 0.7003 (March 8 low) for the second day despite the risk reset in the US and Asian equities.

The currency pair is currently trading at 0.70, having hit a low of 0.6981 earlier today.

The US stocks on Wednesday rose by the most since January as the US Federal Reserve President Powell signaled readiness to cut rates if required. The Asian equities have also picked up a bid tracking the risk-on action in the equities.

The AUD is flashing gains amid risk reset but so far has failed to scale the hurdle at 0.7003.

That said, the technical studies favor a breakout above the key resistance. For instance, the 14-day relative strength index (RSI) is reporting bullish conditions with an above-50 print and the 5- and 10-day moving averages (MAs) are trending north, indicating a bullish setup.

The spot, therefore, appears on track to test the 50-day MA, currently at 0.7025.

Daily chart

Trend: Bullish

Technnical levels