AUD/USD: Aussie breaks key Fibo resistance to take over higher levels

The AUD/USD is trading up 0.5% at $0.7765 against the US Dollar as the closure of China’s Jiangxi Copper follows Tongling in cutting production, sending the copper prices to the highest level since 2014.

AUD and CAD are typical commodity-linked currencies profiting from the commodities rise with Australian Dollar being particularly linked to iron ore and copper prices with the one-quarter of their share on total exports from Australia.

Moreover, the AUD/USD broke the 38.2% Fibonacci retracement level of $0.7740 earlier on Wednesday and it is heading toward next technical hurdle of $0.7810, representing 50% Fibonacci retracement line of the slide from $0.8125 at the beginning of September to a cyclical low of $0.7510 at the beginning of December.

Technical oscillators like the Relative Strength Index and Momentum are both pointing upwards with the Slow Stochastics deeply in the Overbought territory heading towards possible correction lower.

AUD/USD daily chart