AUD/USD Analysis: momentum fading after another failed attempt to break higher

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6863

Australian Consumer Inflation Expectations eased to 3.1% in September.
US-China trade war headlines and ECB’s decision kept the Aussie afloat.
AUD/USD at risk of turning south on a break below 0.6830 support.

The Aussie quietly extended its advance against its American rival, with the AUD/USD pair reaching 0.6894. Nevertheless, the pair retreated to close the day just barely up, and below a major Fibonacci resistance. Data had a modest impact on the pair, as Australia’s consumer inflation expectations, released at the beginning of the day, eased to 3.1% in September, compared to 3.5% in August. The negative effect of the headline was offset by optimism coming from the trade war front, and a rally in equities after the ECB announced a stimulus package. There are no data releases scheduled in Australia this Friday.

AUD/USD short-term technical outlook

The AUD/USD pair has spent most of the day ranging just below the 50% retracement of the July/August decline, still holding above its 20 SMA, although the moving average is now flat. Technical indicators are turning lower within positive level, the Momentum stuck to its 100 level and the RSI at 56, somehow suggesting the decline could continue, particularly if the pair losses 0.6830 an immediate static support.

Support levels: 0.6830 0.6800 0.6770

Resistance levels: 0.6885 0.6920 0.6950

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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