AUD/USD dealing with 0.9600 bids

FXstreet.com (Barcelona) - Having printed a session low this far at 0.9576, off session and fresh weekly highs at 0.9670, AUD/USD is last barely above the 0.96 handle, finding some bids around the 0.9580 area, once selling off in Nikkei index has eased and traders are taking their lunch break in Tokyo.

According to analyst at Windsor Brokers and contributor at FXstreet.com Slobodan Drvenica, the pair has built a reversal pattern, now needing to break above 0.9672 “to confirm short-term base and allow for further recovery,” the analyst said. “The wave could travel to 0.9751, Fibonacci 138.2% expansion and key short-term barrier at 0.9790, 03/06 high, clearance of which to confirm reversal,” Drevenica added.

“Corrective dips on overbought hourly studies face initial support at 0.9600, ahead of 0.9562, previous high, while only break below 0.9500, 50% of entire rally, reinforced by 55DMA, would bring bears back in play,” Drevenica concludes. The pair is still up +1.09% for the week so far, despite opening with a gap lower early Monday, posting a fresh 2.5-year low day after at 0.9324.