After a strong rally early last week, AUD/USD has managed to give up most of its gains and slip below the .9400 handle. But don’t fret! It looks like the currency pair is now testing support at the 100 SMA. Stochastic also indicates a bullish divergence on AUD/USD as it makes higher lows while price is making lower lows.
A strong close above .9400 could mean that the Aussie is about to go up the charts. On the other hand, be wary of a strong close below .9375 as it could mean that the pair is on its way to testing last week’s lows.
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