AUD/USD analysis: bounce of key support, but still at risk of falling

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7540

After the impressive recovery seen at the beginning of the month, the Aussie failed to hold on to gains beyond the 0.7600 level against the greenback for a second consecutive week, closing it in the red at 0.7564. The pair was under pressure ever since Monday, managing to bounce on Friday amid broad dollar's weakness. The Australian dollar came under pressure after the RBA released the Minutes of its latest meeting, indicating that the Central Bank remains concerned over slowing wage growth and household debts. Technically, however, the decline stalled at a key level, as the price tested its 100 DMA late Thursday and before bouncing. The 20 DMA has advanced above the 200 SMA now heading north and converging with the mentioned 100 DMA at 0.7535, the immediate support, whilst technical indicators have pared losses around their mid-lines, now modestly bouncing from them. In the 4 hours chart, the price is a few pips above a bearish 20 SMA, while the larger ones maintain their bullish slopes below the shortest and with the Momentum indicator heading higher around 100 and the RSI indicator turning south around 48, leaving a neutral short term technical stance.

Support levels: 0.7535 0.7500 0.7470

Resistance levels: 0.7560 0.7600 0.7640

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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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