AUD/USD Forecast: Renewed Lockdown Measures In Australia Limited AUD Gains

• AUD/USD edged higher on Wednesday amid broad-based greenback weakness.
• Renewed lockdown measures in Australia limited AUD gains.
• On the upside, 0.7000 is the key level to take.

The AUD/USD pair edged higher and closed Wednesday at daily highs, underpinned by the relentless selling in the US dollar against its main competitors. A better market sentiment, as well as stocks gains, extended support to the perceived riskier Australian dollar. However, the upside remained limited on concerns that renewed lockdown measures in Australia could slow down the economic recovery.

The AUD/USD technical picture has improved according to the 4-hour and daily indicators,  although gains seem limited as long as the Aussie holds below the 0.70 mark. The daily high set at 0.6982 is the immediate resistance to overcome ahead of the 0.7000 psychological level. A break here could pave the way to more gains with the 2020 peak of 0.7064 in sight.  On the opposite side, a loss of the 0.6900 level, 100-period SMA in 4-hour chart, could exert pressure on the pair and send it to the 0.6875 area, en route to 0.6855, 200-period SMA.

Support levels: 0.6960 0.6900 0.6855

Resistance levels: 0.7000 0.7030 0.7064

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