AUD/USD analysis: bouncing from multi-month lows, but upside still limited
|AUD/USD Current price: 0.7531
- Australian housing data and Government budget up next.
- AUD/USD current recovery lacks background, bearish trend intact.
The AUD/USD pair is up daily basis, trading near a daily high of 0.7544 heading into the Asian session, helped mostly by persistent dollar's weakness, although the intraday range has been quite limited due to the absence of macroeconomic news that could act as a catalyst. Things will turn more interesting starting this Monday, as Australia will release its NAB business confidence index alongside with some housing data, while the Australian Government will offer an update on the economic and fiscal outlooks from the previous budget.
The potential of an extension upward is well limited as long as the pair remains below 0.7600, with the current movement seen as a modest correction after the pair flirted with 0.7500 late last week. Technically, the short-term picture has become neutral, as the price has managed to advance a few pips above a strongly bearish 20 SMA, but technical indicators have lost their upward potential after reaching their mid-lines, now turning south. From the current level, the immediate resistance is 0.7575, the level to surpass to confirm another leg higher, but it would take a clear extension beyond 0.7610 to pose a more constructive outlook for the next sessions.
Support levels: 0.7500 0.7450 0.7420
Resistance levels: 0.7575 0.7610 0.7640
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.