AUD/USD analysis: small double bottom under way
|AUD/USD Current price: 0.7382
- Australian dollar benefits from broad dollar's weakness but remains subdued.
- The pair can advance up to 0.7470 on a break above 0.7410.
The AUD/USD pair fell to 0.7345 but managed to trim Wednesday's losses and close positively at 0.7383 on the back of broad dollar's weakness, affected by softer-than-expected local data and escalating trade-war concerns. There were no relevant news coming from Australia and the macroeconomic calendar will remain empty this Friday, leaving the pair in the hands of sentiment. The pair has set a small double bottom at yearly lows, with the neckline of the figure being Wednesday's high at 0.7408, which means that gains above the level could result in a 60 pips rally to complete the figure, anyway irrelevant in the longer term, as the pair would need to regain 0.7600 to have chances of extending its recovery further. Ahead of the Asian opening, the 4 hours chart shows that the pair is currently battling with a bearish 20 SMA, while technical indicators have corrected oversold conditions with the Momentum losing upward strength right above the 100 level and the RSI currently at 42, leaning the scale toward the upside without confirming it.
Support levels: 0.7345 0.7310 0.7275
Resistance levels: 0.7410 0.7440 0.7470
View Live Chart for the AUD/USD
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