AUDUSD rallies as China’s turmoil increases demand for commodity currencies
The pair leaves a classic bullish pin bar on daily chart
Buyers are eyeing 0.7450 resistance area in the short term
The Australian dollar rallied against the US Dollar (USD) yesterday, increasing the price of AUDUSD to more than 0.7350 as the turmoil in China increased demand for commodity currencies as safe heaven investment.
AUD/USD bottomed yesterday at 0.7215 when the major collapsed from 0.7320 before entering a sideways drift that eventually garnered demand until aforementioned drop zone until 0.7280 support where further demand came in and took the pair to meet territory just shy of the psychological 0.74 handle at 0.7387.
In the 4 hours chart, the price is now above a bearish 20 SMA, whilst the technical indicators have corrected oversold readings, but lost their upward potential around their mid-lines. At this point, the pair needs to beat sellers around 0.7450 to be able to extend its gains during the upcoming sessions.
Binary Options Trade Idea
Considering the overall technical and fundamental outlook, buying the call options of the pair around current levels appears to be a good strategy in short to medium term.