AUD/USD: recovery limited below 0.8000
|AUD/USD Current price: 0.7972
The Aussie recovered against the greenback after falling to 0.7908, the lowest for the pair in this September, helped by US Trump and North Korean Kim Jong Un, who revived geopolitical tensions by menacing each other. North Korea is said to be preparing another nuclear test, which resulted in demand for safe-haven assets. Gold's advance, alongside with the greenback easing in this scenario, backed the recovery in the pair to the current 0.7972 level. The American dollar is also being weighed by positive news coming from Europe which lifted the common currency.
Despite nearing 0.8000, the pair seems unable to regain its upward strength, as in the 4 hours chart, the price is developing below its 20 SMA, acting as dynamic resistance at 0.7985, whilst technical indicators remain within negative territory, gaining downward potential. An advance beyond the mentioned 20 SMA could lead to an advance up to 0.8030, a major static resistance level, while beyond this last, the rally could extend towards 0.8100, with approaches to this last probably triggering profit taking and resulting in a sharp pullback.
Support levels: 0.7920 0.7870 0.7835
Resistance levels: 0.7990 0.8030 0.8070
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