AUD/USD analysis: Techs heading south within negative territory

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7894

The AUD/USD pair bounced strongly on Friday to end the week in the red anyway at 0.7894. The Aussie was under pressure for a second consecutive week amid the RBA softening its tone, making it clear that is in no rush to adjust the monetary policy neither follow the lead of its overseas counterparts. This last week, the pair was trapped between risk sentiment and soaring gold prices, which limited the decline. Early Monday, China will release a batch of macroeconomic figures, these lasts probably affecting the pair. Despite Friday's recovery, the upward potential for the pair is limited, as in the daily chart, the price is well below its 20 SMA, while the Momentum indicator continues heading south within negative territory, as the RSI hovers within neutral territory. In the 4 hours chart, the latest advance was contained by a daily descendant trend line coming from August 1st high, while the price settled a few pips above a bearish 20 SMA, while technical indicators are stuck within neutral territory. The immediate resistance comes at 0.7925, the level to surpass to take off the bearish pressure, and favor some additional gains, at least short term.

Support levels: 0.7855 0.7810 0.7785

Resistance levels: 0.7925 0.7960 0.7700

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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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