AUD/USD: bulls are correcting but will dollar resurge?

Currently, AUD/USD is trading at 0.7849, down -0.06% on the day, having posted a daily high at 0.7860 and low at 0.7850.

AUD/USD is steady in the early Asian shift as the month draws to a close and without any catalysts ahead before the US session. For the US session, the higher betas were rescued by the VIX and small caps and banking stocks were on the rise post yesterday's prop by Trump's rally and tax cut announcements. Copper also surged today making for a clean environment for the bulls to press on until the high at 0.7859. However, the DXY was lower in the session and could be due a rebound on fresh optimism in the markets in coming sessions.

Valeria Bednarik, chief analyst at FXStreet, argues that this movement remains corrective according to technical readings, as the in the 4 hours chart, technical indicators have recovered sharply from extreme oversold readings, but remain well into negative territory. 

AUD/USD levels

Support levels: 0.7835 0.7807 0.7770

Resistance levels: 0.7880 0.7910 0.7945

"Additionally, the pair is developing below a still firmly bearish 20 SMA, a dynamic resistance around 0.7880. A recovery above this last could see the pair gaining further this Friday, but it will take the pair settling above 0.7945 to suggest further gains ahead for next week, quite unlikely at the time being," added Valeria.