The Aussie recovered above the 0.7700 level after plummeting to 0.7630 against the greenback, closing the weekly opening gap triggered by the oil producers' fiasco. The Australian dollar is quite sensitive to commodities, and the decline in oil prices dragged the currency lower at the beginning of the day. Nevertheless, the market is quite bullish on the Aussie, and took the deep in the pair as a chance to bought it back. Technically, further gains can be expected on a break above 0.7735, the immediate resistance and last week high, but the intraday technical picture favors such advance, as in the 1 hour chart, the price accelerates above a horizontal 20 SMA, whilst the technical indicators head strongly higher above near overbought levels. In the 4 hours chart, the technical indicators lack directional strength within positive territory, but the 20 SMA regained the upside below the current level, in line with additional gains for the upcoming session.
Support levels: 0.7690 0.7650 0.7610
Resistance levels: 0.7735 0.7760 0.7800