AUD/USD: Bullish trend keeps on going, 0.78 offers tested

AUD/USD keeps rising at a slow but gradual pace, testing offers at 0.78, with Thursday marking the 8th day of gains in a row and 13 out of the last 14 trading days.

USD weakness continues to be the main driver

Fundamentally, Valeria Bednarik, Chief Analyst at FXStreet, notes: "AUD is backed by dollar's broad weakness and continued strength in base metals, with gold trading as high as $1,295.00 a troy ounce. This Friday, Australia will release the first batch of macroeconomic data for the week, including November HIA New Home Sales and Private Sector Credit, but unless the figures disappoint big, the dominant bullish trend will likely prevail."

AUD/USD technicals remain bullish

Bednarik adds: "The pair advanced further above the 61.8% retracement of the October/December decline, the immediate support at 0.7745, broken on Wednesday, favoring  further gains ahead, towards October high of 0.7896. Technical readings in the  4 hours chart also support the case of a bullish extension, as the 20 SMA continues advancing below the current level, now converging with the mentioned Fibonacci support, while the RSI indicator stabilized within overbought territory, as the Momentum indicator keeps grinding higher well into positive territory."