AUD/USD analysis: base metals weighed the AUD

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7217

Australian macroeconomic calendar has little to offer that can affect the pair.
Aussie ignored the positive momentum of US equities, fell alongside with gold.

The AUD/USD pair fell sharply after failing once again to sustain gains beyond the 0.7300 figure, also dragged south by a sharp decline in metals' prices. Broad dollar's strength, triggered by the US Federal Reserve confirming the gradual pace of tightening into 2019 sent gold prices to over one-month lows. The Aussie, lately led by sentiment through equities' behavior, ignored the positive tone that prevailed through the US afternoon. The week will end as it started, with Australia not offering relevant macroeconomic data. For this Friday, the country has scheduled Private Sector Credit figures for August, hardly a game changer.

Meanwhile, the pair broke below the 50% retracement of its latest downward move at 0.7225, now the immediate resistance, and the ongoing downward extension sub 0.7250 also leans the scale toward the downside for the upcoming sessions. The 38.2% retracement of the mentioned slide comes at 0.7190, with a break below it further discouraging bulls. In the 4 hours chart, the 20 SMA is currently gaining downward traction above the 200 SMA, both above the current level, while the 100 SMA is directionless a handful of pips below the current level. The Momentum indicator in the mentioned chart remains directionless within negative levels, while the RSI maintains its downward slope around 36, also skewing the risk to the downside.

Support levels: 0.7190 0.7155 0.7120

Resistance levels: 0.7225 0.7255 0.7300

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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