AUD/USD Analysis: still unable to clear the 0.7100 figure
|AUD/USD Current price: 0.7085
- AUD/USD up on lackluster dollar's demand, solid Wall Street's gains.
- US-China trade talks continue, Sec. Mnuchin says more work needs to be done.
The AUD/USD pair settled at around 0.7085 Friday, up for the day and the week, although below the 0.7100 figure. Lackluster dollar's demand and the good performance of US equities underpinned the pair at the end of the week, although the Aussie remained out of market's favor, suffering a similar syndrome as the EUR, with soft local economic developments making it unattractive. The pair tumbled Thursday on news that Chinese authorities were considering a delay in Trump Xi Jinping meeting, later confirmed by US Treasury Secretary Steven Mnuchin who said that a summit between the two nations' leaders would not take place in March, as more work needs to be done. By the end of the week, however, Chinese Vice Premier Liu He spoke to US representatives Mnuchin and Lighthizer over the phone, and things looked a bit more encouraging. There's no data scheduled in Australia at the beginning of the week.
The AUD/USD pair's latest recovery seems corrective, as the pair advanced after falling in the previous three weeks. Furthermore, the daily chart shows that it met selling interest multiple times around a flat 20 SMA, now around the mentioned 0.7100 figure. The 100 DMA lacks directional strength around 0.7160 while the 200 DMA extends its slump, over 100 pips above the current level and maintaining its downward slope. The Momentum indicator maintains its downward slope after failing to enter positive ground while the RSI indicator consolidates at around 47, all of it indicating that the risk of additional declines is still big. In the shorter term, and according to the 4 hours chart, the pair is trapped between the 20 and 100 SMA, while technical indicators hold within positive levels without clear directional strength, a picture that can switch to bullish on a clear break higher.
Support levels: 0.7040 0.7000 0.6965
Resistance levels: 0.7100 0.7135 0.7180
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