AUD/USD Analysis: holding ground waiting for a catalyst

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7037

RBA’s Kent scheduled to speak early Tuesday.
Aussie led by equities¿ behavior in the absence of other news.
AUD/USD could turn short-term bearish only below 0.6995.

The AUD/USD pair seesawed between modest gains and losses to end the day flat in the 0.7040 price zone. The pair initially fell on the back of dollar’s demand at the beginning of the day, although buyers defended the downside at a0.7030, the daily low. The pair recovered alongside equities, as European and American indexes managed to post modest intraday advances. Australia has quite a scarce macroeconomic calendar this week, with no data released so far, and an RBA’s Ken speech being the only event scheduled for this Tuesday.

AUD/USD short-term technical outlook

The AUD/USD pair is finishing the American session with a sour tone, as despite holding above the 0.7000 figure, it posted a lower low and a lower high daily basis. In the 4 hours chart, it is developing a couple of pips below its 20 SMA, which maintains its bullish slope, still well above the 100 and 200 SMA. Technical indicators in the mentioned chart have stalled their downward corrective movement just above their mid-lines, now lacking directional strength. Overall, the potential downward will remain limited as long as the pair holds above 0.6995, while it would need to break 0.7080 to extend gains this Tuesday.

Support levels: 0.7030 0.6995 0.6950

Resistance levels: 0.7080 0.7115 0.7140

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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