AUD/USD: easing within range, 0.7870 key short-term support

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7904

Dollar's demand early Europe sent the AUD/USD pair down to 0.7897, where the pair pared losses settling around 0.7900 ahead of the US opening. There was no certain catalyst for dollar's recovery, but the positive mood among equities' traders, as there were no news coming from Australia, with the country's macroeconomic calendar quite scarce this week. The US has little to offer also today, but on Monday, a minor negative US report sent the greenback lower, situation that can be replicated today, particularly if US equities are unable to follow the lead of their European counterparts. The short term picture is modestly bearish, although as most of the major pairs, it's still trading within a familiar range. In the 4 hours chart, technical indicators have turned lower, entering bearish territory but with limited downward momentum, whilst the price is now below an anyway flat 20 SMA. The downward potential will likely increase on a break below 0.7870,the immediate support, favoring then a retest of this month low at 0.7807.

Support levels: 0.7870 0.7840 0.7805

Resistance levels: 0.7930 0.7965 0.8000

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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