AUD/USD analysis: at a brink of a bearish breakout
|AUD/USD Current price: 0.7358
- Australian dollar among the most affected by trade war uncertainty.
- Absence of Australian data leaves equities as the main market motor.
The Australian currency followed equities all through the day, purely led by risk sentiment amid the absence of relevant local news this week. The AUD/USD pair fell to 0.7351 in the US afternoon and settled nearby ahead of the Asian opening, as US indexes trimmed early gains while the dollar's demand remains strong all through the past sessions. The Australian macroeconomic calendar has nothing to offer this Thursday, with the Aussie probably following the lead of equities, and not looking good at the time being, as its back near its yearly low against the greenback. The backs and forths in headlines about the trade war, for sure are not helping to improve market's sentiment. The short-term technical picture is bearish, as the pair met sellers on a test of a now mild bearish 20 SMA in the 4 hours chart, resuming its decline from the level, while technical indicators turned sharply lower, with the RSI at its lowest for the week at around 33. The immediate support is 0.7345, the yearly low, with a break below the levels favoring a continued decline toward 0.7250 for the upcoming sessions.
Support levels: 0.7345 0.7310 0.7275
Resistance levels: 0.7400 0.7430 0.7470
View Live Chart for the AUD/USD
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.