AUD/USD analysis: break below 0.7600 opens door for further slides

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7640

RBA's meeting minutes eyed, but no surprises expected there.
Dollar's recovery weighed on Aussie, failure to regain 0.7700 favors another leg south.

The Australian dollar was among the best performers this past week, surging against its American rival up to 0.7694, to settle at 0.7640, its highest weekly settlement in five. The Aussie got a strong boost last Wednesday from better-than-expected Australian employment and confidence data, but investors turned to the greenback on Friday, with the DXY recovering its weekly losses to end it near 94.00. Firmer gold prices during these last few days added to the upward case of the commodity-related currency, which advanced on relief after the US Federal Reserve maintained the status quo. Australia will release its mid-year economic and fiscal outlook this Monday, and RBA's meeting minutes on Tuesday, with no more relevant data scheduled for the rest of the week. Technically, the daily chart for the AUD/USD pair settled above a directionless 20 DMA, while technical indicators hold within positive territory, but losing strength upwards. In the 4 hours chart, the 20 SMA maintains a strong upward slope heading north almost vertically after crossing above the 200 EMA, but technical indicators retreated from overbought levels, with the Momentum still heading lower, approaching its mid-line, and the RSI consolidating around 55, suggesting that the decline could extend. A break below 0.7600 is required to confirm such extension, with the market then eyeing the 0.7530 price zone.

Support levels: 0.7600 0.7570 0.7530

Resistance levels: 0.7660 0.7700 0.7730

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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