AUD/USD analysis: break of 0.7640 exposes 0.7500 figure

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7668

AUD/USD poised to retest December low after breaking 0.7740.
Australian dollar to face a major challenge early Tuesday in the form of RBA quarterly inflation.

Bulls unwind their longs in AUD/USD after the technical breakout of the 0.7740 level, sending the pair to its lowest in a week, to finally close at 0.7669. Broad dollar's strength and softer-than-expected Australian data were behind the decline, exacerbated by the sour tone of equities and the retracement in commodities' prices. Australia won't release macroeconomic data this Monday, but early Tuesday, RBA Q1 inflation will be closely watched for directional clues. In the meantime, the pair trades near its March low of 0.7642, with a break below the level favoring a steeper decline down to 0.7501, December low. Technical readings in the daily chart support such slide as the pair closed well below its 20 DMA, while technical indicators head sharply lower within negative territory. Shorter term, and according to the 4 hours chart, the pair is biased lower, given that the Momentum indicator heads sharply lower near oversold territory, the RSI consolidates around 26, while the 20 SMA crossed below the 200 EMA almost vertically, and now stands a couple of pips above the mentioned 0.7740 level.

Support levels: 0.7640 0.7600 0.7565

Resistance levels: 0.7700 0.7740 0.7785

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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