AUD/USD Analysis: modest bounce, still bearish

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6705

The negative momentum of worldwide equities limited AUD advance.
AUD/USD remains near multi-year lows and at risk of falling further.

The AUD/USD pair fell to 0.6670 early Wednesday, dragged by the negative momentum of worldwide equities. The pair, however, bounced from the level amid absent demand for the greenback and in spite of persistent risk aversion. Helping the Aussie remain afloat, gold prices were sharply up, with spot trading at around $1,500.00 a troy ounce. There were no macroeconomic releases in Australia on Wednesday, and there won’t be this Thursday either.

AUD/USD short-term technical outlook

The AUD/USD pair is unchanged daily basis, but near a one decade low. Speculation that the US Federal Reserve may be forced to act has limited the slump, but given that the RBA has already cut rates three times this year, the balance is still skewed in dollar’s favor. The pair is technically bearish according to the 4 hours chart, as technical indicators have recovered modestly from oversold readings, but are already losing strength upward well into negative ground. The 20 SMA in the mentioned chart keeps heading south at around 0.6730 and still far below the larger ones.

Support levels: 0.6700 0.6670 0.6620

Resistance levels: 0.6730 0.6770 0.6805

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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