AUD/USD analysis: consolidating, but downward potential increasing

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7676

The AUD/USD pair showed little signs of life this Monday, confined to a 50 pips range ever since the week started, as opposing forces limited directional moves. Resurging dollar in the US afternoon after Trump anticipated he will discuss infrastructure spending before the Congress on Tuesday, was not enough to offset the Aussie, supported by rising equities. Australia will release its New Home Sales and Current Account data during the upcoming session, although the macroeconomic guidance for the Aussie will come early Wednesday, with the release of Chinese PMIs. The technical picture remains unchanged, with the pair confined to the higher end of its February range, still unable to sustain gains beyond the 0.7700 level. Technical indicators in the 4 hours chart support a downward extension, as the pair met selling interest on approaches to a flat 20 SMA, while the RSI indicator turned lower, now around 45, and the Momentum indicator accelerated its decline within negative territory, now at fresh 2-week lows. Nevertheless, the pair needs to break below 0.7600, to confirm additional declines that can extend down to 07450 during the following sessions.

Support levels: 0.7640 0.7600 0.7555

Resistance levels: 0.7710 0.7740 0.7770

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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