AUD/USD needs to get through 0.77 for sake of conviction

The AUD/USD is consolidating bid on a better day for commodity prices while the OPEC news got the party started.

Wall street closed with yet more gains for the week and risk appetite has enabled a bid in the Aussie up towards recent highs of 0.7695. However, the pair needs to get through 0.7700 to offer any real conviction while otherwise, risks factors in the global economy could continue to favour US asset classes as a safe haven and expose offers in a fragile Aussie. The data from the US overnight offered a poor durable good number, albeit beating expectations -1.4% vs 0.0% actual, but well below previous 3.6%. We now await US GDP Q2 estimates as next catalyst for the pair in the absence of anything domestic from Australia. 

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AUD/USD levels

Spot is presently trading at 0.7692, and next resistance can be seen at 0.7692 (Monthly High), 0.7692 (Weekly High), 0.7692 (Daily Open), 0.7694 (Daily High) and 0.7694 (Yesterday's High). Support below can be found at 0.7687 (Daily Low), 0.7674 (Hourly 20 EMA), 0.7658 (Daily Classic PP), 0.7647 (Hourly 100 SMA) and 0.7645 (Yesterday's Low).  Regarding candlestick formations, we can see Dark Cloud Cover formation on the 1-hour and a Piercing Line formation on the 4-hour chart..

Valeria Bednarik, chief analyst at FXStreet explained that the pair is technically bullish as in the 1 hour chart, the price is advancing above a modestly bullish 20 SMA, while technical indicators grind higher, right around their mid-lines. "In the 4 hours chart,  technical indicators regained their bullish slopes after a limited bearish move within positive territory, whilst the price came back strongly after testing its 20 SMA early during the US session."

What to do with all that risk