AUD/USD finds dip buyers as support at 0.9700 holds firm

FXstreet.com (Barcelona) - The Aussie finished higher for the first time in 10 trading sessions, finding support at previous lows set last week just above 0.9700 and maintaining a firm bid throughout most the day to close up 76 pips at 0.9806

According to analysts at FXStreet.com, “the Aussie has come into contact with the first layer of supply at 0.9830-20, with the level initially absorbing most of the bids yet failing to produce any major pullback. The market is still bearish but further corrections may be seen as the Aussie technical improve, buoyed by recent upside break of a descending channel”

So what are the charts saying after the sharply higher close today? Some analysts are looking at the shorter term time frames to help break down the price action for hints at what may develop in the coming sessions. According to Val Bednarik of FXStreet.com, "Australian dollar finally corrected higher, after 2 weeks of steady losses, still far from suggesting a bottom may be developing in the longer term. In the hourly chart however, technical readings favor an upward continuation, with 20 SMA gaining bullish slope below current price and indicators heading higher in positive territory. In the 4 hours chart price stands above 20 SMA, first time since May 9th, also supporting the upward continuation that may attempt to reach 0.9910/20 are today."