AUD/USD Forecast: A better market mood provides support

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7542

Australian Retail Sales advanced a modest 0.1% in May, according to preliminary estimates.
The positive tone of US equities helped AUD/USD to recover the 0.7500 threshold.
AUD/USD trades at daily highs, but its bullish potential is limited.

The AUD/USD pair recovered toward the 0.7540 area, holding nearby heading into the Asian opening amid the greenback shedding some ground on the back of a better market mood, following the lead of US equities. Data wise, Australia published the preliminary estimate of May Retail Sales, which missed the market’s expectations by posting a modest 0.1% advance. The country won’t publish macroeconomic figures on Tuesday.

AUD/USD short-term technical outlook

The AUD/USD pair trades at daily highs, but its bullish potential is limited at this point. The 4-hour chart shows that the 20 SMA heads firmly lower a few pips above the current level and far below the longer ones. Technical indicators corrected extreme oversold conditions, but the RSI turned flat at around 41, signaling limited buying interest. The corrective advance could continue should the pair extend gains above 0.7550, the immediate resistance level.

Support levels: 0.7500 0.7460 0.7420

Resistance levels: 0.7550 0.7590 0.7630

View Live Chart for the AUD/USD

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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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