AUD/USD Analysis: holding ground waiting for a catalyst
|AUD/USD Current Price: 0.7037
- RBA’s Kent scheduled to speak early Tuesday.
- Aussie led by equities¿ behavior in the absence of other news.
- AUD/USD could turn short-term bearish only below 0.6995.
The AUD/USD pair seesawed between modest gains and losses to end the day flat in the 0.7040 price zone. The pair initially fell on the back of dollar’s demand at the beginning of the day, although buyers defended the downside at a0.7030, the daily low. The pair recovered alongside equities, as European and American indexes managed to post modest intraday advances. Australia has quite a scarce macroeconomic calendar this week, with no data released so far, and an RBA’s Ken speech being the only event scheduled for this Tuesday.
AUD/USD short-term technical outlook
The AUD/USD pair is finishing the American session with a sour tone, as despite holding above the 0.7000 figure, it posted a lower low and a lower high daily basis. In the 4 hours chart, it is developing a couple of pips below its 20 SMA, which maintains its bullish slope, still well above the 100 and 200 SMA. Technical indicators in the mentioned chart have stalled their downward corrective movement just above their mid-lines, now lacking directional strength. Overall, the potential downward will remain limited as long as the pair holds above 0.6995, while it would need to break 0.7080 to extend gains this Tuesday.
Support levels: 0.7030 0.6995 0.6950
Resistance levels: 0.7080 0.7115 0.7140
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