AUD/USD analysis: selling pressure eases, but 0.8000 caps

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7985

Softening base metals undermine AUD recovery.
USD broad-based weakness to keep the downside limited.

The AUD/USD pair eased to a daily low of 0.7956 on the back of dollar's short-lived recovery during the Asian session and early London one, amid headlines indicating that the US Government began functioning again. The recovery took place ahead of Wall Street's opening with dollar's broad weakness but the pair was unable to recover the 0.8000 mark, now trading a handful of pips below it. Softer base metals prices, with copper under strong pressure, limit Aussie's gains. The Australian calendar has been empty so far this week and will remain so this Wednesday, with the pair then probably trading on sentiment during the upcoming sessions. The short-term outlook is bearish, as in the 4 hours chart, the pair broke below a horizontal 20 SMA at the beginning of the day, with the later recovery stalling below it. Technical indicators in the mentioned chart have recovered within negative territory before losing upward strength, now poised to resume their declines. The pair has a strong support area around 0.7930/40, where it bottomed multiple times last week, with a break below it probably leading to a test of a major Fibonacci support at 0.7890, the 61.8% retracement of the September/December decline.

Support levels: 0.7935 0.7890 0.7850

Resistance levels: 0.8000 0.8045 0.8090

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.

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