Aug 27 (Reuters) - The Australian dollar could strengthen further as a major technical level comes under pressure.
An impressive bull trend has begun since AUD based at COVID-19 crisis lows in March, and barring further significant virus damage a cycle low is in place at 0.5510.
The weekly chart shows only three major pullbacks against the trend, which kicked off with a strong candle reversal signal in the week ending March 27.
Last week's failure to hold a 200-week moving average break triggered profit taking, but the 0.7275 to 0.7160 drop was quickly exploited by those wanting to join the trend.
The 200-week moving average, 0.7253, is again under pressure and a close above could open up a run to 0.7400 or even 0.7500 by year-end. The market last closed above the long-term average in April 2018 and a subsequent bear market lasted into the March 2020 reversal.
Failure to extend the trend above the 200-week moving average could bring an Ichimoku cloud twist into play. The 0.6296-00 twist is value late November.
For more click on FXBUZ
AUD/USD weekly candle chart: https://tmsnrt.rs/32sX0T7
(Peter Stoneham is a Reuters market analyst. The views expressed are his own)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.