AUD/USD analysis: bearish pressure increases, 0.7500 becoming more likely

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7691

Aussie still pressured by trade war fears and a mute RBA.
AUD/USD poised to retest December 2017 low at 0.7501.

The AUD/USD pair remained lifeless this Tuesday, confined to a tight range around the 0.7700 level, but managed to extend its decline to a fresh 2018 low of 0.7678, having topped daily basis up to 0.7720. The early impulse was triggered by positive news coming from Australia, as the House Price Index for the last quarter of 2017 beat expectations, up in the three months to December by 1.0%, well above the 0.0% expected, while the annual reading resulted at 5.0%, below the previous 8.3% but beating the expected 3.9%. The Minutes from the latest RBA's meeting didn't add something new to what the market already knew, reiterating that low rates are helping lowering unemployment and lifting inflation, while the economic recovery will remain gradual. The pair is down for a fourth consecutive day and seems that the decline could continue, as it continues sliding below the 61.8% retracement of the December/January rally. In the 4 hours chart, the price is well below a bearish 20 SMA, currently at around 0.7720, while in the same chart, the Momentum aims higher below its 100 level as the RSI holds flat around 30. The pair has scope to extend its decline down to 0.7500, where it bottomed last December, as long as it remains below 0.7740, the mentioned Fibonacci level.

Support levels: 0.7665 0.7630 0.7580

Resistance levels: 0.7700 0.7740 0.7775

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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