AUD/USD analysis: at a brink of a bearish breakout

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7358

Australian dollar among the most affected by trade war uncertainty.
Absence of Australian data leaves equities as the main market motor.

The Australian currency followed equities all through the day, purely led by risk sentiment amid the absence of relevant local news this week. The AUD/USD pair fell to 0.7351 in the US afternoon and settled nearby ahead of the Asian opening, as US indexes trimmed early gains while the dollar's demand remains strong all through the past sessions. The Australian macroeconomic calendar has nothing to offer this Thursday, with the Aussie probably following the lead of equities, and not looking good at the time being, as its back near its yearly low against the greenback. The backs and forths in headlines about the trade war, for sure are not helping to improve market's sentiment. The short-term technical picture is bearish, as the pair met sellers on a test of a now mild bearish 20 SMA in the 4 hours chart, resuming its decline from the level, while technical indicators turned sharply lower, with the RSI at its lowest for the week at around 33. The immediate support is 0.7345, the yearly low, with a break below the levels favoring a continued decline toward 0.7250 for the upcoming sessions.

Support levels: 0.7345 0.7310 0.7275

Resistance levels: 0.7400 0.7430 0.7470

View Live Chart for the AUD/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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