AUD/USD Analysis: bears taking over

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6822

Australian Commonwealth Bank PMI mixed but signaling weak economic progress.
AUD/USD to accelerate its decline only with a break below 0.6770.

The AUD/USD pair has fallen to 0.6810 this Thursday, pressured during the American session amid resurgent dollar’s demand. The pair was off to a weak start to the day amid mixed preliminary estimates of October Commonwealth Bank PMI. Official data showed that services activity contracted to 50.8, although manufacturing activity beat expectations by printing 50.1, still below the previous monthly figure. Brexit-related headlines spurred demand for safe-haven assets, including the greenback. There are no macroeconomic figures scheduled in Australia for the upcoming Asian session.

AUD/USD short-term technical outlook

The AUD/USD pair is trading around the 38.2% retracement of its latest daily advance, technically bearish according to the 4-hour chart, as the pair has extended its slump below a now bearish 20 SMA, and as technical indicators hover near fresh weekly lows within negative levels. A steeper decline could be expected on a break below 0.6770, a mid-term static support.

Support levels: 0.6800 0.6770 0.6730

Resistance levels: 0.6840 0.6875 0.6900

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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