AUD/USD Forecast: Short-term perspective improves
|- Aussie manages to erase post-RBA minutes losses.
- AUD/USD advances and approaches key resistance at 100-day SMA.
The AUD/USD managed to erase Asian session losses and climbed back above 0.6800 during the New York trade, helped by a weaker greenback.
The Australian dollar came under pressure on Tuesday, with AUD/USD hitting a low of 0.6785, after minutes from the latest Reserve Bank of Australia meeting showed that the central bank did consider cutting rates amid global slowdown concerns. However, the AUD/USD managed to shrugged-off the dovish minutes and climbed to a five-day high of 0.6835.
AUD/USD technical picture has turned slightly bullish in the 4-hour chart, with indicators in positive territory and the last three candles closing above the 200-period SMA. However, the perspective is less optimistic in the daily chart, with indicators in negative territory and the AUD/USD trading below the 100-day SMA (0.6838). A breakout of this level, could send the pair to the next significant resistance at 0.6900, where the psychological level converges with a long-term descendent trendline.
On the flip side, immediate supports are seen at the 0.6800/05 area (20-period SMA in 4-hour chart), and last week’s low at 0.6770 ahead of 0.6720.
Support levels: 0.6805 0.6770 0.6720
Resistance levels: 0.6840 0.6860 0.6900
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