AUD/USD Forecast: Bears keep pushing, but direction depends on sentiment

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7090

Australian upbeat employment data fell short of supporting the Aussie.
The market’s sentiment, driven by coronavirus-related issues, is the only market’s motor.
AUD/USD extended its decline below the 0.7100 level, has room to fall further.

The AUD/USD pair fell to 0.7055, a fresh October low, bouncing from the level ahead of the daily close to settle near the 0.7100 level. The Aussie fell despite September employment data was better than anticipated. According to the official release, the country lost 29.5K jobs in the month, 20.1K of those being full-time positions. The unemployment rate increased from 6.8% to 6.9%, better than the 7.1% expected. The pair rather followed the lead of equities, which were pressured by the ruling dismal mood. The country will publish August HIA New Home Sales this Friday, previously at -14.4%.

AUD/USD short-term technical outlook

The latest AUD/USD recovery seems corrective, with the pair at risk of extending its decline. The 4-hour chart shows that technical indicators have corrected oversold conditions, but also that they remain well below their midlines. Also, the pair continues to develop below all of its moving averages, which present bearish slopes.

Support levels: 0.7050 0.7020 0.6980

Resistance levels: 0.7130 0.7170 0.7205

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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