AUD/USD Analysis: Aussie bulls getting more discouraged

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7089

Australian housing data released Tuesday anticipates more AUD declines.
Dollar broad weakness limits the downside, it's on the Federal Reserve now.

The AUD/USD pair remained within familiar levels just below the 0.7100 figure for most of this Tuesday, ending the US sessions at its daily low around 0.7085. Australia released the Minutes of its latest meeting at the beginning of the day, showing policymakers raised 'significant uncertainties' over the local economy. Also, board members said that the positive and negative factors were more evenly balanced than at previous meetings. The central bank repeated its neutral stance toward the future moves in rates. Also, the country released the House Price Index data for Q4, which fell by much more than estimated, down in the quarter by 2.4% and yearly basis by 5.1%. Australia will release during the upcoming session the February Westpac Leading index, previously at -0.01%. The US Federal Reserve will unveil its latest decision on monetary policy this Wednesday and could be a make it or break it for the pair.

From a technical perspective, the 4 hours chart shows that the pair was once again unable to surpass a bearish 200 SMA, now pressuring converging 20 and 100 SMA, with the shorter one maintaining its bullish slope. Technical indicators have retreated further, although the Momentum is now bouncing from its mid-line, while the RSI heads lower at 51, falling short of confirming further slides ahead. The bearish case would e confirmed on a break below 0.7040, March 14 daily low.

Support levels: 0.7040 0.7000 0.6965

Resistance levels: 0.7100 0.7135 0.7180

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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