AUD/USD analysis: dollar's weakness limiting declines

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7921

The AUD/USD pair trimmed most of its early gains ahead of the close, ending this Monday barely higher around 0.7920, with the Aussie driven mostly by base metals' behavior. Commodities surged at the beginning of the day, helping the pair test print a daily high of 0.7967, but the absence of follow-through during the second half of the day and a modest recovery in the greenback sent it back lower. There were no macroeconomic news in Australia this Monday, and the calendar will remain empty also this Tuesday, which means that the pair will keep on taking clues from other markets. From a technical point of view, the 4 hours chart presents a neutral-to-bearish stance, as the price kept moving back and forth around a horizontal 20 SMA, while technical indicators turned south, but remain stuck around their mid-lines. The downside potential is being limited by dollar's self-weakness, although a downward acceleration through 0.7875 should result in additional declines, at least short term.

Support levels: 0.7910 0.7875 0.7835

Resistance levels: 0.7980 0.8020 0.8060

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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