AUD/USD analysis: demand for the Aussie remains well limited

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7059

A strong bounce in equities barely helped AUD/USD to remain afloat.
Australia returns from a long holiday with no data scheduled.

The AUD/USD pair recovered just modestly despite Japanese and US indexes bounced nicely after their early week's collapse, with the Nikkei adding roughly 200 points and Wall Street trimming Monday's losses. Part of the lack of action around the Aussie could be attributed to Australian markets being closed in observance of the Boxing Day, but mostly to the fact that equities' bounce doesn't erase concerns about a global economic downturn. Australia will resume activity this Thursday, although no data will come from the country.

The pair heads into the Asian opening at around 0.7060, having topped for the day at 0.7069. The 4 hours chart shows that selling interest is aligned around a firmly bearish 20 SMA around the mentioned daily high that extends its slide below the larger ones, which also present bearish slopes. In the mentioned chart, the RSI indicator aims modestly higher around 40, while the Momentum indicator retreats just modestly within negative levels, indicating little buying interest around the pair. The pair could recover further on a break above the mentioned daily high, although chances of sustained gains above the 0.7100 level are still seen limited.

Support levels: 0.7020 0.6990 0.6960

Resistance levels: 0.7070 0.7100 0.7135

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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