AUD/USD analysis: consolidating near yearly lows

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7196

Aussie's decline on pause, but no reasons to regain the upside.
Commodities and equities undermine demand for the Australian currency.

The AUD/USD pair ends the day as it started, trading a few pips below the 0.7200 figure. The pair was confined to a 50 pips' range, as the latest sell-off has put bears in cautious mode, albeit bulls are nowhere to be found. The Australian trade balance posted a larger-than-expected surplus of $1,551M, although below June's reading, as exports dropped 1% while imports were modestly up. Australia will release the AIG Performance of Construction Index for August, previously at 52, alongside with some housing data. The pair is in consolidative mode, which turned the short-term picture neutral, although the dominant bearish trend remains firmly in place, exacerbated by the sour tone of commodities and equities. In the 4 hours chart, the pair has spent the day struggling around a flat 20 SMA, and below the larger ones, while technical indicators are stuck around their midlines, lacking directional strength. The pair would need to advance beyond 0.7235, the weekly high, to gain further bullish traction, eyeing then the 0.7300 price zone.

Support levels: 0.7150 0.7120 0.7095

Resistance levels: 0.7230 0.7260 0.7300

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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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