AUD/USD analysis: modest recovery backed by base metals
|AUD/USD Current price: 0.7638
The AUD/USD pair surged from a fresh two-week low of 0.7587 and closed the day with gains around 0.7638, as a strong recovery in equities, particularly those related to base-metals, supported the Aussie. The macroeconomic calendar in the country will remain empty this Wednesday, with the Australian currency therefore taking clues from local stocks. The short term picture presents a modest upward potential, as in the 1 hour chart, the price is above a now bullish 20 SMA, whilst technical indicators are turning lower within positive territory, not enough to suggest further short term declines. In the 4 hours chart, the price settled above a bearish 20 SMA, whilst technical indicator entered positive territory, but turned flat, indicating that buying interest diminished after the latest intraday bounce. Overall, the upward potential seems limited as long as the price remains below the 0.7670 region, although a recovery above it could see the pair extending its recovery up to 0.7749, March 21st daily high.
Support levels: 0.7600 0.7570 0.7530
Resistance levels: 0.7675 0.7710 0.7750
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