AUD/USD analysis: consolidating near yearly lows

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7357

Australian dollar breaths as equities pare bleeding, risk still skewed to the downside.
USD retains its leadership despite soft Q1 GDP final reading.

The AUD/USD pair heads into the Asian opening little changed daily basis, and after extending its yearly decline to 0.7341 at the beginning of the day. The pair remained range bound amid the more stable behavior among equities, and the absence of Australian data, bouncing from the mentioned low as the greenback lost part of its attractive after the downward revision of Q1 GDP. Australia will release some minor figures during the upcoming Asian session, including New Homes Sales for April and Private Sector Credit figures for May. The pair is intrinsically bearish, despite the ongoing short-term consolidative phase, as in the 4 hours chart, it is developing well below a sharply bearish 20 SMA, as the 100 SMA accelerates below the 200 SMA but well above the shorter one, while technical indicators attempt modest recoveries far below their midlines. The unconvincingly attempt to break lower, as it’s the third time the pair bounces from the 0.7340 region, does not suggest an upcoming recovery, neither diminish chances of a downward extension ahead.

Support levels: 0.7345 0.7310 0.7275

Resistance levels: 0.7400 0.7430 0.7470

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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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