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

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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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