AUD/USD Forecast: Bears prepare to test the 0.7600 area
AUD/USD Current Price: 0.7683
- RBA Meeting Minutes were dovish, undermining demand for the aussie.
- Australia will publish the May Westpac leading Index, previously at 0.2%.
- AUD/USD has increased bearish potential in the near-term, eyes 0.7600 area.
The AUD/USD pair broke lower on Tuesday, ending the day in the 0.7680 price zone. The greenback advanced in anticipation of the US Federal Reserve announcement on Wednesday, while the aussie suffered from dovish RBA Meeting Minutes. According to the document, policymakers noted that it would be premature to bring QE to an end, although they announced in May that they would review their current policy next July.
The country also published the Q1 House Price Index, which was up by 5.4% in the quarter, slightly worse than expected. On Wednesday, Australia will publish the May Westpac leading Index, previously at 0.2%.
AUD/USD short-term technical outlook
The AUD/USD pair is under mild-pressure, poised to extend its slide. In the near-term, and according to the 4-hour chart, the risk is skewed to the downside, as the pair is developing below all of its moving averages, with the 20 SMA accelerating south below the longer ones. The Momentum indicator aims to recover within negative levels, while the RSI heads marginally lower at around 33. The pair has room to extend its decline toward the 0.7600 price zone on a break below 0.7675, the immediate support level.
Support levels: 0.7675 0.7640 0.7605
Resistance levels: 0.7730 0.7780 0.7820
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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.
