AUD/USD Current Price: 0.7040
- Wall Street weighed on the Aussie, downside potential still limited.
- AUD/USD needs to rally beyond 0.7095 to gain further bullish momentum.
The AUD/USD pair finished the week with gains at 0.7040, retreating in the last trading session from a multi-week high of 0.7081. The Australian dollar hit such a high, following comments from NY Fed’s Williams late Thursday, suggesting aggressive rate cuts in the US. His comments were later denied while St. Louis Bullard gave the greenback additional strength after saying a 25bps this month would be appropriate. By the end of the day, the sharp decline in US equities dragged the pair further lower. The upcoming Asian session won’t include macroeconomic releases, and in general, the fundamental side will be overly light for Australia and China.
AUD/USD short-term technical outlook
The AUD/USD pair has room to continue advancing despite the latest pullback, as, in the daily chart, it settled above a bullish 20 DMA, also above the 100 DMA, while technical indicators hold into positive ground, although with uneven directional strength. The 200 DMA in the mentioned chart heads nowhere at around 0.7095, providing a key resistance that the pair needs to break to confirm a bullish continuation. For the shorter term, and according to the 4 hours chart, the potential downward seems limited, as the intraday decline stalled above all of the moving averages, while technical indicators eased from overbought readings, the Momentum currently consolidating and the RSI heading lower but at around 55.
Support levels: 0.6995 0.6950 0.6915
Resistance levels: 0.7095 0.7135 0.7170
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