AUD/USD Analysis: stuck around 0.7200, downside limited by 0.7155

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7194

Aussie confined to a tight intraday range but holding on to latest gains.
Chinese growth data and monetary policy setting the tone for the pair.

The AUD/USD pair is trading little changed daily basis a few pips below the 0.7200 level, having extended its consolidative phase. The pair fell to a daily low of 0.7183 after reaching a daily high of 0.7225, this last following Chinese news at the beginning of the day, but was unable to sustain gains after discouraging European news gave the dollar a lift. The pair was unable to find a certain direction, despite equities back and forth in the three major sessions. There are no macroeconomic figures scheduled in Australia for today and only 1 minor Chinese housing report.

The pair is short-term neutral according to the 4 hours chart, battling now with the 20 SMA which lost its upward strength but holding above the larger ones. Technical indicators head nowhere around their midlines, reflecting the lack of interest in the pair. The key to the downside is still 0.7155, the 61.8% retracement of the December/January decline, as chances of a downward move will increase on a break below it, while the upside will open only on a steady advance beyond 0.7250.

Support levels: 0.7155 0.7115 0.7070

Resistance levels: 0.7250 0.7300 0.7335

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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