AUD/USD analysis: steeper decline expected on a break below 0.7370

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7377

Australian macroeconomic calendar to remain empty this Tuesday.
Aussie dragged lower by the soft tone of base metals, equities.

The AUD/USD pair met sellers in the 0.7440 price zone, retreating all the way down to the 0.7370 support region, confined to familiar levels. A decline in base metals and equities is to blame for the daily decline, while late US afternoon, there were rumors making the rounds about upcoming US GDP being closer to 5.0%, justifying late dollar's strength. There were no macroeconomic releases in Australia, and the calendar will remain also empty this Tuesday, with the pair then, taking clues from stocks and commodities' behavior. The pair offers a neutral-to-bearish short-term technical stance, as, in the 4 hours chart and after meeting sellers around a bearish 200 SMA, it settled also below the 20 and 100 SMA. The Momentum indicator in the mentioned chart eases in positive territory, while the RSI heads south around 45, this last supporting additional slides without confirming them. A break below the 0.7370 level should favor a steeper decline toward the 0.7300 region. Whether the pair can extend its decline below this last or not, would most likely be linked to US indexes' direction these upcoming days.

Support levels: 0.7370 0.7330 0.7300

Resistance levels: 0.7445 0.7490 0.7520

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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