AUD/USD analysis: down for the day, but holding above key Fibonacci support

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7575

Australian construction expected to have improved in Q1.
Aussie lead by equities, down on Wall Street inability to continue rallying.

After trading as high as 0.7605, the AUD/USD pair turned lower, entering negative territory during US trading hours, now hovering above the 0.7565 Fibonacci level, the 38.2% retracement of its latest weekly slump. The Aussie was backed by the positive momentum of equities and commodities at the beginning of the day but eased in US trading hours as Wall Street was unable to extend its Monday's rally, while crude oil prices gave back and closed lower after reaching fresh multi-year highs. Australia will release its Westpac Leading Index for April during the upcoming Asian session, previously at -0.2%, and the Q1 Construction Work done, seen recovering and printing 1.0% after previous -19.4% slump. The latest will likely have a stronger effect on the AUD, as the housing sector worries the RBA. From a technical point of view, the 4 hours chart shows that the pair stalled its recovery around a modestly bearish 200 SMA and a few pips below the 50% retracement of the mentioned decline at 0.7620, but also that so far is holding above the mentioned Fibonacci level at 0.7565, the immediate support. The 20 SMA in the mentioned chart gains upward traction below the current level, while technical indicators eased modestly but remain well above their mid-lines, indicating limited selling interest for the time being.

Support levels: 0.7520 0.7470 0.7435

Resistance levels: 0.7590 0.7625 0.7660

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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