AUD/USD analysis: pressuring highs, but 0.7200 still elusive

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7187

RBA Meeting's Minutes expected to repeat the usual positive economic outlook rhetoric.
Australia Housing Price Index foreseen falling 0.7% in the three months to June.

The AUD/USD pair trimmed Friday's losses on the back of broad dollar's weakness, but was unable to regain the 0.7200 level, stalling its intraday recovery a few pips below it. The better performance of gold, with the bright metal regaining the 1,200.00 level, added to Aussie's recovery, although cautious surrounding US-China trade tensions prevent it from extending its advance beyond the key figure. The country will release its quarterly House Price Index data for Q2 during the upcoming Asian session, while the RBA will publish the Minutes of its latest meeting. House prices are expected to have declined by 0.7% in the three months to June, while the central bank is foreseen reiterating its latest positive economic rhetoric, adding nothing news to what the market already knows.

The pair found intraday support around the 23.6% retracement of its latest daily decline now battling with the 38.2% retracement of the same slide, so far unable to break above it. In the 4 hours chart and for the upcoming sessions, the pair offers a neutral-to-bullish stance, as it regained ground above a bullish 20 SMA, but remains below a bearish 100 SMA, while technical indicators recovered, the RSI now heading north around 59 and the Momentum lagging, steady around its mid-line. The next Fibonacci resistance comes at around 0.7225, and the pair would need to clearly break above it to offer a clearer bullish stance.

Support levels: 0.7165 0.7130 0.7095

Resistance levels: 0.7225 0.7260 0.7300

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.

EUR/USD climbs to two-week highs beyond 1.1900

EUR/USD is keeping its foot on the gas at the start of the week, reclaiming the 1.1900 barrier and above on Monday. The US Dollar remains on the back foot, with traders reluctant to step in ahead of Wednesday’s key January jobs report, allowing the pair to extend its upward grind for now.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold treads water around $5,000

Gold is trading in an inconclusive fashion around the key $5,000 mark on Monday week. Support is coming from fresh signs of further buying from the PBoC, while expectations that the Fed could turn more dovish, alongside concerns over its independence, keep the demand for the precious metal running.

Crypto Today: Bitcoin steadies around $70,000, Ethereum and XRP remain under pressure

Bitcoin hovers around $70,000, up near 15% from last week's low of $60,000 despite low retail demand. Ethereum delicately holds $2,000 support as weak technicals weigh amid declining futures Open Interest. XRP seeks support above $1.40 after facing rejection at $1.54 during the previous week's sharp rebound.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Ripple exposed to volatility amid low retail interest, modest fund inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.