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AUD/USD's advance stopped at 0.8910; focus on 0.9000?

FXStreet (San Francisco) - The AUD/USD's advance from the 0.850 area broke above the 0.8900 key level before reaching the highest level since September 23 at 0.8910. However the pair failed to maintain levels above 0.8900 and currently trades back to 0.8890.

"The high today has surpassed the high for October at 0.8897 and looks toward the 38.2% retracement of the move down from the September high to the October low at the 0.89318 level," pointed out Greg Michalowski from ForexLive. "The 0.90213 level is another target if the bulls can remain in control but that is for another day."

Currently, AUD/USD is trading at 0.8890, up 0.39% on the day, having posted a daily high at 0.8913 and low at 0.8849. The FXStreet OB/OS Index is reflecting overbought hourly conditions, while the FXStreet Trend Index is slightly bullish.

AUD/USD sentiment

According to Valeria Bednarik from FXStreet, momentum is signaling "further advances and far from reaching the extremes," in the hourly chart. "In the 4 hours chart technical readings also favor the upside despite showing little strength at the time being, eyeing a test of 0.8930 in the short term, 38.2% retracement of the latest daily bearish run."

With an extension of the 0.8910's rejection, AUD/USD will find supports at 0.8880, 0.8850 and 0.8825. To the upside, resistances are at 0.8910, 0.8925 and 0.9000.

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