AUD/USD analysis: neutral, but buying interest remains strong

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7546

Stocks saved the day for the Aussie, as the antipodean currency plunged at the beginning of the day on the back of poor growth figures. According to official data, the Australian economy shrank 0.5% in the three months to September, well below an already pessimistic forecast of 0.3%. The annual reading resulted at 1.8%, missing expectations of 2.5% and far below previous 3.3%. The AUD/USD pair fell down to 0.7416 with the news, but recovered in the US afternoon, ending the day not far from the high set at 0.7483. Technically, the daily chart shows that the pair has set two dojis in-a-row, with long lower shadows, which indicate that the market is still interested in buying the AUD. Shorter term, the 1 hour chart shows that the price is above a directionless 20 SMA, while technical indicators hold near overbought readings with no directional strength. In the 4 hours chart, the price has recovered above a modestly bullish 20 SMA, while technical indicators have lost upward strength within positive territory, limiting the upward scope, as long as the price remains below 0.7510, the immediate resistance.

Support: levels: 0.7450 0.7410 0.7360

Resistance levels: 0.7510 0.7550 0.7595

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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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