AUD/USD analysis: Recovery fails, still pressuring 0.7470/0.7500

AUD/USD Current price: 0.7542

After reaching 0.7600 on Monday, the AUD/USD pair turned to the downside. It rebounded on Thursday, a day when the Aussie outperformed. It failed to continue with the recovery against the US dollar and continues to trade near a critical support. Commodity prices, global fears, China and concerns of the Reserve Bank of Australia limit the upside. Next week, inflation will be the key report from Australia. 

The weekly chart shows the pair still supported by the 20-SMA and the 0.7470/0.7500 area. A consolidation below should lead to more losses, with a probable target around 0.7300. Technical indicators still favor the downside but the mentioned barrier so far is holding. A recovery above 0.7575 could offer more support to the Aussie, but as long as the 0.7700 zone remains intact, the upside is seen limited and unstable. A weekly close significantly above 0.7700 would be a relevant bullish signal. 

Support levels: 0.7470 0.7440 0.7405

Resistance level: 0.7550  0.7590 0.7620 

View Live Chart for the AUD/USD

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