AUD/USD analysis: at its lowest for 2018 and bearish

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7712

Trade war fears keeping Aussie in sell-off mode.
AUD/USD en route to 0.7550, December monthly low.

The AUD/USD pair settled at its lowest for this 2018 on Friday at 0.7712, as demand for commodity-linked currencies was undermined by escalating tensions about a trade war coming from the US. By the end of the week, US President trump announced he plans to impose additional tariffs on China, to compensate a $100B deficit with the country. Poor macroeconomic figures from Canada undermined further demand for commodity-related currencies while falling gold prices added to Aussie's weakness. The daily chart shows that the pair closed below the 61.8% retracement of the December/January rally at 0.7740, now the immediate support. Technical indicators in the mentioned chart entered bearish territory with the RSI heading firmly south around 35, as the pair broke below all of its moving averages, all of which favors additional declines as long as the price holds below the mentioned 0.7740 level. Shorter term, and according to the 4 hours chart, the pair is also biased lower, as technical indicators barely pared their declines within oversold territory, while the pair settled far below its moving averages, with the 20 SMA heading south almost vertically around 0.7840.

Support levels: 0.7700 0.7665 0.7630

Resistance levels:0.7740 0.7775 0.7810

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.

EUR/USD weakens to near 1.1900 as traders eye US data

EUR/USD eases to near 1.1900 in Tuesday's European trading hours, snapping the two-day winning streak. Markets turn cautious, lifting the haven demand for the US Dollar ahead of the release of key US economic data, including Retail Sales and ADP Employment Change 4-week average.

GBP/USD stays in the red below 1.3700 on renewed USD demand

GBP/USD trades on a weaker note below 1.3700 in the European session on Tuesday. The pair faces challenges due to renewed US Dollar demand, UK political risks and rising expectations of a March Bank of England rate cut. The immediate focus is now on the US Retail Sales data.

Gold sticks to modest losses above $5,000 ahead of US data

Gold sticks to modest intraday losses through the first half of the European session, though it holds comfortably above the $5,000 psychological mark and the daily swing low. The outcome of Japan's snap election on Sunday removes political uncertainty, which along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood. This turns out to be a key factor exerting downward pressure on the safe-haven precious metal.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Follow the money, what USD/JPY in Tokyo is really telling you

Over the past two Tokyo sessions, this has not been a rate story. Not even close. Interest rate differentials have been spectators, not drivers. What has moved USD/JPY in local hours has been flow and flow alone.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.