AUD/USD Analysis: bears retain control despite dollar's slump

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6894

Aussie out of buyers' radar amid RBA´s imminent rate cut.
AUD/USD pair to resume bearish trend below 0.6865.

The AUD/USD pair edged modestly higher Thursday, recovering up to 0.6900 on broad dollar's weakness, although with the collapse in equities keeping possible gains at check. The Aussie remains depressed amid speculation the RBA won't have no choice but to cut rates in its June meeting, moreover, after officials dropped a key wording in their latest statement referred to rate moves, noting that there's "not a strong case" for a near-term move in the cash rate. Australia didn't release any relevant data early Thursday, and the macroeconomic calendar will remain empty also Friday.

The 4 hours chart for the AUD/USD pair offers a neutral-to-bearish stance, as it barely advanced above a still weak 20 SMA, while the 100 and 200 SMA maintain their strong bearish slopes far above the current level. Technical indicators lost their upward strength after entering positive ground, now heading south within neutral levels. The pair keeps bouncing from the 0.6860 price zone, yet given that recoveries are quite shallow, the risk of a steeper recovery is still limited.

Support levels: 0.6865 0.6825 0.6775

Resistance levels: 0.6905 0.6930 0.6965

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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