AUD/USD analysis: bulls hesitate, but still lead
AUD/USD Current price: 0.8002
The Australian dollar edged modestly higher on Friday to end the week around 0.8000, down from a daily high of 0.8034. There were no news coming from Australia, but sluggish US inflation data released on Thursday's keep the Aussie afloat, alongside with Friday' US disappointing readings. Despite the yield differential favors the AUD against the greenback, speculative interest is still unwilling to push the price far above the 0.8000 threshold, although the upward is still favored according to the daily chart, as the price held above a bullish 20 DMA after a brief dip below it on North Korean headlines, whilst technical indicators have managed to regain the upside within positive territory. Shorter term, and according to the 4 hours chart, the upward potential is limited, given that the price is unable to clearly break above a bearish 20 SMA, whilst technical indicators show little directional strength within neutral territory. Some follow-through beyond 0.8035, the immediate resistance and Friday's high is needed to confirm a new leg higher, with scope them to retest the 0.8100 level.
Support levels: 0.7960 0.7930 0.7900
Resistance levels: 0.8035 0.8065 0.8100
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.
