AUD/USD: bullish gap to 0.7592 erased, so where now?

AUD/USD opened with a gap from 0.7541 to 0.7592 at the start of early trade this week on the back of the French elections.

Time for risk-on post-French election round one? - Westpac

Analysts at Westpac suggest that the start of the risk could be bullish for such risk currencies as the Aussie. However, the pair is settled back to 0.7555 at the time of writing and up just 0.19% after markets sold into the bullish open. So for the week ahead and domestically, markets will take a break on Aus tomorrow but will return for CPI that will be the highlight for the Aussie this week. There will also be some key data from the US with durable goods and GDP Q1 first estimate as major events this week also. 

For the past seven weeks, the Australian dollar has been alternating between advances and declines, explained analysts at Brown Brothers Harriman. "The lower end of the $0.7500-$0.7700 range has been frayed, just like the upper end frayed in March and February. The price action argues against playing the breakout and the technical indicators appear to concur. A firm Q1 CPI report next week may help reinforce the lower end of the range." 

French elections: who is likely to win the second round? - Nomura

AUD/USD levels

AUD/USD is supported by the 20-day ma at 0.7549 with eyes on 0.7610 50% retracement and the 16th April high. On a continuation of the supply, the next major levels to the downside are the 0.7472/78 recent lows and cloud support ahead of the Fibo support at .7450. On the wide, we have the 2016-2017 uptrend at 0.7274 and the bottom of the 16-month range. The upside targets are the 0.7750/.7836 region.