Analysis

AUD/USD Forecast: Losing bullish potential despite a better mood

AUD/USD Current Price: 0.5960

  • Australian CB Leading Economic Index up to 106.9 in January.
  • Aussie retreated despite substantial gains in equities and steady gold prices.
  • The AUD/USD pair is unable to recapture the 0.6000 threshold.

The AUD/USD pair advanced to 0.6073, its highest in over a week, although it trimmed gains ahead of the close, posting a modest daily advance. An upbeat market mood, with equities soaring globally, underpinned the pair at the beginning of the day. Also, the Australian January Conference Board Leading Economic Index increased 0,4%  to 106.9, boosting demand for the Aussie. The pair retreated during the American afternoon, despite Wall Street’s impressive rallies. Gold eased just modestly, hardly enough to explain the retracement. Instead, it seems that the AUD is out of investors’ radar at the time being.

AUD/USD short-term technical outlook

Now trading at around 0.5960, the AUD/USD pair is holding on to positive ground, although losing its bullish potential. In the 4-hour chart, the pair holds above its 20 SMA, which maintains a mild-bullish slope, although below firmly bearish 100 and 200 SMA. Technical indicators, in the meantime, ease within positive levels, holding for now above their midlines.

Support levels: 0.5895 0.5850 0.5810  

Resistance levels: 0.5975 0.6000 0.6045

View Live Chart for the AUD/USD

 

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