AUD/USD Forecast: at the upper end of the range
AUD/USD Current price: 0.7125
- RBA Meeting's Minutes showed policymakers concerned about tightening lending standards.
- The positive tone of worldwide equities underpins the Aussie, but not enough for a bullish breakout.
The AUD/USD pair eased from a 2-week high of 0.7148 achieved by the end of Monday, trading anyway above the 0.7100 figure. The Minutes from the RBA October meeting weighed on the Aussie, as policymakers expressed concerns about tightening lending standards, adding that "it would be important to monitor the future supply of credit to ensure that economic activity continued to be appropriately supported." The central bank maintained the cash rate at a record low of 1.5% and seems unlikely that such rate will be changed until at least 2020.
Ahead of Wall Street's opening, most worldwide indexes trade in the green, keeping the pair afloat. US data to be out today has little chances of boosting the USD even in the case of upbeat figures, moreover considering there are no first-tier figures scheduled, but some minor reports.
The pair is trading a few pips above a bullish 20 SMA in the 4 hours chart, also above a Fibonacci support, the 38.2% retracement of its latest daily decline, but also below bearish 100 and 200 SMA, and despite multiple attempts to advance, capped by selling interest around 0.7140, the 50% retracement of the same slide. Technical indicators in the mentioned chart have bounced modestly from their midlines, but remain in neutral levels lacking enough strength to suggest a bullish extension ahead. Still, the risk is leaned to the upside, with base metals and equities setting direction in the upcoming sessions.
Support levels: 0.7085 0.7040 0.7010
Resistance levels: 0.7140 0.7175 0.7200
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.
