AUD/USD analysis: bears becoming more courageous
|AUD/USD Current price: 0.7192
- Australian October NAB´s Business indexes to be out during the next Asian session.
- Aussie weighed by equities rout at the end of the end.
The AUD/USD pair settled a couple of pips above a 1-week low of 0.7187, a level achieved at the beginning of the day. The greenback opened the week strengthening against all its major rivals as European equities were in sell-off mode following weekend headlines, spurring concerns about a no-deal Brexit and the EU imposing sanctions to Italy over the 2019 budget. Despite a positive tone in Asian equities, the Aussie was unable to attract buyers. A modest intraday bounce came by the hand of headlines bringing some temporal Brexit hopes, but the pair resumed its decline as US equities collapsed. There were no news affecting the Australian currency at the beginning of the week, with the October NAB's Business Conditions and Business Confidence indexes scheduled for today, and some minor Chinese figures that won't affect the AUD.
The pair is currently trading near its daily low and below the 38.2% retracement of its October/November rally at 0.7195. The intraday attempt to recover ground met sellers around 0.7220, making of this last a relevant resistance for the upcoming hours. In the 4 hours chart, the 20 SMA gains downward strength well above the current level, while technical indicators maintain their strong bearish slopes, the Momentum at daily lows and the RSI at around 37, all of which leans the risk toward the downside. A strong static support comes at 0.7170, with a break below the level exposing the 0.7100 level. Above the mentioned 0.7220 level, on the other hand, the pair could retest the 0.7250 static resistance level, albeit there are no technical signs to support such recovery at the moment.
Support levels: 0.7170 0.7130 0.7100
Resistance levels: 0.7220 0.7250 0.7290
View Live Chart for the AUD/USD
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