AUD/USD Forecast: pressuring key resistance
|AUD/USD Current price: 0.7135
- Aussie among the best performers, benefiting from base metals' rally on dollar's weakness.
- US positive data may end up benefiting the Aussie today.
The AUD/USD pair is trading at fresh 2-week highs around 0.7140, as the dollar is under strong selling pressure across the board. Risk aversion took over the financial world at the weekly opening, and the USD is not the preferred safe-haven today. Now underpinning the Aussie, are European equities struggling to enter in positive ground and base metals' prices, sharply up, with gold at levels last seen mid-July.
Ahead of Wall Street's opening, the US will release the NY Empire State Manufacturing Index for October, foreseen at 20 from the previous 19, and September Retail Sales. Monthly basis, are expected to have increased by 0.5% vs. 0.1% in August, while the ex-autos figure is expected unchanged at 0.3%. The Retail Sales Control Group is expected at 0.4% vs. the previous 0.1%. A better-than-expected outcome could keep US equities on the winning side, and therefore play against the USD when it comes to its value against the AUD.
From a technical point of view, the pair is struggling to overcome a major resistance area, the 50% retracement of the 0.7237/0.7040 slump. In the 4 hours chart, the pair is well above a bullish 20 SMA but below the 100 and 200 SMA which maintain their bearish slopes, while technical indicators have lost their upward strength but remain within positive levels, not enough to confirm a bullish extension but for sure limiting the downside.
Support levels: 0.7085 0.7040 0.7010
Resistance levels: 0.7140 0.7175 0.7200
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