FxWirePro: AUD/USD extends gains above 110-EMA, upbeat Australia GDP data underpins Aussie

Chart - Courtesy Trading View 

AUD/USD was trading 0.29% higher on the day at 0.7270 at around 04:10 GMT.

The pair is extending break above 110-EMA, is on track to test 200-DMA at 0.7325.

Australian dollar underpinned after data released earlier on Monday showed Australian Q4 GDP beats estimates.

Australia’s fourth quarter (Q4) GDP rose past 3.0% forecasts and -1.9% prior to 3.4% QoQ. The YoY number stood at 4.2% versus 3.7% expected and 3.9% previous readouts.

Talks between Ukraine and Russia are on the table, keeping markets hopeful of an intermediate solution to the grim conditions.

Technical indicators are bullish, Stochs and RSI are sharply higher. Momentum is with the bulls and volatility is high.

Major Support Levels: 

S1: 0.7234 (110-EMA)

S2: 0.7194 (21-EMA)

S3: 0.7179 (20-DMA)

Major Resistance Levels: 

R1: 0.7280 (Upper BB)

R2: 0.73

R3: 0.7325 (200-DMA)

Summary: AUD/USD trades with a bullish bias. Scope for test of 200-DMA at 0.7325. Bullish invalidation below daily cloud.