AUD/USD Forecast: At risk of falling as long as below 0.7700

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7669

The Australian AIG Performance of Services Index improved to 55.8 in February from 54.3.
Chinese trade-related data released over the weekend may support the aussie.
AUD/USD is technically bearish but needs to slide below 0.7650.

The AUD/USD pair finished the week with modest losses around 0.7670, after falling on Friday to 0.7621. The pair fell amid the persistent greenback’s demand, boosted by upbeat employment-related data and soaring government bond yields. On the other hand, solid Wall Street’s gains helped the pair bounce ahead of the weekly close, alongside yields retreating ahead of the close.

Australian data released by the end of the week was encouraging, as the AIG Performance of Services Index improved to 55.8 in February from 54.3 in the previous month. The country won’t publish macroeconomic data this Monday but may find support in Chinese trade figures released over the weekend, as the Trade Balance surplus in dollar terms resulted in $103.25 billion, much better than anticipated.

AUD/USD short-term technical outlook

The AUD/USD pair is bearish, according to the daily chart. The pair has broken below its 20 SMA, while technical indicators head firmly lower within negative levels. Nevertheless, the longer moving averages maintain their bullish slopes below the current level, providing dynamic support in the case of a steeper decline. The 4-hour chart shows that the pair settled below all of its moving averages, while technical indicators pared their slumps near oversold readings, anyway keeping the risk skewed to the downside.

Support levels: 0.7650 0.7610 0.7575

Resistance levels: 0.7730 0.7770 0.7810

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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