AUD/USD analysis: bears retain control of Aussie
AUD/USD Current price: 0.7381
- Australian Westpac Leading Index fell 0.2% in May, anticipating slower economic growth.
- AUD/USD poised to test 0.7250 on a break below 0.7346, the weekly and yearly low.
The AUD/USD pair advanced up to 0.7408 but was unable to hold on to gains after the release of the Australian Westpac Leading Index which came in at -0.2% in May from 0.2% in April, hinting a slowdown in the economy for this second half of the year, as the indicator is used to predict future GDP growth. The pair trimmed its early gains ahead of the US opening, spending the American session hovering around the current level. Softer metal prices helped to keep the Aussie subdued. The RBA will publish its quarterly bulletin during the upcoming Asian session, which may shed some light over the bank's view on the economic and financial developments. The 4 hours chart shows that the intraday recovery stalled below a bearish 20 SMA, while technical indicators retreated from their intraday highs before stabilizing, the Momentum well below its 100 level and the RSI at around 31, all of which leans the risk toward the downside. The weekly low was established at 0.7346, the immediate support, with a break below the level favoring a continued decline toward the 0.7250 region, a strong long-term static support.
Support levels: 0.7345 0.7310 0.7275
Resistance levels: 0.7395 0.7430 0.7480
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.
