AUD/USD Forecast: Aussie bulls giving up as gold collapsed

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7210

Risk aversion weighed on equities, which closed sharply lower in Europe and the US.
Gold prices plummeted on dollar’s demand, adding pressure on the Aussie.
AUD/USD turned bearish in the short-term and neared a critical support level at 0.7170.

The Aussie fell against its American rival to 0.7198, weighed by a dismal mood that sent equities into the red while fueling greenback’s demand. Adding pressure on the Australian currency, bright metals plummeted on THE dollar’s rally. Spot gold briefly fell below $1,900.00 a troy ounce, ending the day at around 1,905, its lowest settlement since late July. The Australian macroeconomic calendar has little to offer this week. Nevertheless, RBA’s Debelle is scheduled to offer a speech titled “the Australian economy and monetary policy.”

AUD/USD short-term technical outlook

The AUD/USD pair trades near the mentioned daily low, biased lower according to intraday technical readings. The 4-hour chart shows that it has broken below its 200 SMA, while the 20 SMA accelerated lower and pierced the 100 SMA above the larger one, signaling strong selling interest. Technical indicators, in the meantime, stabilized near oversold readings, with no signs of downward exhaustion. The pair has a strong static support level at 0.7170, and a steeper decline should be expected on a break below it.

Support levels: 0.7170 0.7130 0.7090

Resistance levels: 0.7220 0.7250 0.7285

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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