AUD/USD looks set to extend its advance, 0.75/0.76 levels on the cards – OCBC

AUD/USD was last seen trading in positive territory above 0.6900. Economists at OCBC Bank expect the pair to extend its rise.

Retain buy dips bias

“Bullish momentum on weekly chart intact while RSI rose. A potential cup and handle pattern is observed on weekly chart, and this is typically a bullish formation. Completion of pattern puts textbook objective at around 0.75/0.76 levels.”

“Near term pullback not ruled out but bias to buy dips remains.”

“Key resistance at 0.6920 (76.4% fibo), 0.7020 before 0.7150 (Aug high). Support at 0.6840 (200DMA), 0.6760/70 levels (21DMA, 61.8% fibo retracement of Aug high to Oct low) and 0.6680 (50DMA).”

“Medium term, we stick to buying dips. Softer US data (raising hopes for Fed policy calibration) and positive development out of China should keep AUD supported.”