AUD/USD analysis: Aussie recovers, bullish above 0.7120
|AUD/USD Current price: 0.7080
- Australian dollar recovers fast with US indexes shallow bounce from multi-month lows.
- Run to safety paused in the American afternoon, dollar gives up some ground.
The AUD/USD pair fell to 0.7054 at the beginning of the day, retesting the mentioned low following Wall Street's opening, as the Aussie was dragged lower by the sour market's sentiment that sent worldwide indexes into a selling spiral. Australian macroeconomic calendar had nothing to offer early Tuesday and will remain empty this Wednesday, which means that the pair will continue trading alongside with sentiment. Meanwhile, gold prices soared to fresh 3-month highs on the run to safety, somehow lending support to the commodity-linked currency.
The pair is trading marginally up daily basis, reacting with more conviction to equities' advances than to slumps, somehow suggesting that speculative interest is more willing to send the pair higher than lower. Nevertheless, it is still below the 23.6% retracement of its October decline at around 0.7090, the immediate resistance, and in the 4 hours chart, also below firmly bearish moving averages. In the mentioned chart technical indicators have lost their bearish strength, bouncing modestly but still within negative ground, falling short of confirming a bullish extension ahead. The upside will look more constructive on an advance beyond the weekly highs in the 0.7120 price zone.
Support levels: 0.7040 0.7000 0.6960
Resistance levels: 0.7090 0.7120 0.7155
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.