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.

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