Technical Analysis

AUDUSD back to 0.7000 as buyers encouraged by stock gains

AUDUSD back higher on the day

The extension back to the upside has the pair looking back toward its high for the day reached in the London morning session at 0.70138. The price is back above the 0.7000 level currently at 0.7006. The swing high from last Monday reached a 0.70185 and is the next target ahead of the extreme from last week at 0.70629. That high price from last Wednesday stalled near a topside trendline (see red numbered circles).

Helping the upside is a run higher in US stocks. A snapshot of the market currently shows:

The small-cap Russell index is also moving to the upside with a gain of 14.96 points or 0.80%. The volatile Cathie Wood ARK Innovation ETF is doing even better with a gain of 3.18% today.

The “risk on” tone tends to give the AUDUSD a boost.

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