AUD/USD analysis: in a consolidative phase, but risk lean toward the downside

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7659

Selling interest strong around 0.7700.
Busy Chinese and Australian macroeconomic calendars this week.

The AUD/USD pair spent the week consolidating at the lower end of October's range closing the week pretty much flat at 0.7659. All through the week, the pair attempted to recover the 0.7700 level but was steadily rejected from the key threshold. The RBA released its quarterly Monetary Policy statement early Friday, with the most relevant line being a modest downward revision of the bank's inflation forecast, now seen rising 2% by mid-2018. The upcoming week will be a data-wise one, with multiple releases from China and Australia, with this last offering October employment data and November's labor cost inflation. Technical readings in the daily chart indicate that the risk remains towards the downside, as the price settled below a strongly bearish 20 DMA, and below the 23.6% retracement of its latest weekly decline. The Momentum indicator in the mentioned chart aims higher, but below its 100 level, while the RSI indicator turned modestly lower around 39, supporting the bearish perspective, although a break below 0.7625 is required at this point. Shorter term and according to the 4 hours chart, the pair presents a neutral-to-bearish stance, as the price settled below an anyway horizontal 20 SMA, while indicators head nowhere within neutral territory.

Support levels: 0.7625 0.7590 0.7555

Resistance levels: 0.7695 0.7730 0.7770

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.

EUR/USD holds firm near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February.

GBP/USD hovers near 1.3600 as UK government crisis weighs on Pound Sterling

GBP/USD moves sideways after registering modest gains in the previous session, trading around 1.3610 during the European hours on Monday. The pair could come under pressure as the Pound Sterling may weaken amid a fresh government crisis in the United Kingdom.

Gold remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.