AUD/USD analysis: looks at 0.7000 as price holds above key SMAs
AUD/USD Current Price: 0.6963
Antipodeans gained on risk sentiment as markets consolidate last week rally. US indexes finished practically flat while US bond yields move lower, keeping the US dollar weak across the board. Investors continue to look at US-Iran tensions and the G20 summit (June 28-29) as the main risks in the short-term. The Aussie was among the top performers with the AUD/USD held to all of its recent gains. No key data from Australia is due over the next hours. RBA Assistant Bullock will deliver a speech on Tuesday, and the RBNZ rate decision after the Wall Street closing bell could have an impact on AUD. Some correction or a consolidation of the US Dollar seems likely considering that Monday was the fourth-day in-a-row of losses but no clear signals have emerged yet.
The AUD/USD pair continues to move in an ascendant channel with a steep slope in the short-term. In the 4-hours chart, the 20 SMA is about to cross the 100 and 200 SMAs offering a bullish signal. At the moment, AUD/USD is struggling to hold on top of 0.6960 that would lead to a test of the key 0.7000. Once above, the road for June highs at 0.7021 seems clear. In the same chart, the RSI is flat at 70 while Momentum eased from the top. A slide to 0.6930 should be seen as a correction while a return below the key mentioned SMA that converges around 0.6925/30 would point that the pair has peaked.
Support levels: 0.6940 0.6925 0.6885
Resistance levels: 0.6965 0.7010 0.7050
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.
