AUD/USD Forecast: Bears retain control, despite the better market mood

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6709

Wall Street’s substantial gains maintained AUD/USD afloat throughout the second half of the day.
The Australian Westpac Leading Index declined to -0.13% in November from -0.05% previously.
AUD/USD is technically neutral-to-bearish, eyes on the 0.6630 support level.

The AUD/USD pair posted a modest advance on Wednesday, helped by the better market mood lifting global equities. Nevertheless, the pair could not clearly advance beyond the 0.6700 threshold and trades around the level ahead of the Asian opening. Heading into the US close, local indexes retain substantial gains, limiting the downside in the near term.

Australian data undermined the pair, as the Westpac Leading Index declined to -0.13% in November from -0.05% in the previous month. On the other hand, upbeat US consumer confidence lifted the greenback alongside Wall Street through the last session of the day. Australia will not publish relevant macroeconomic figures on Thursday.

AUDUSD short-term technical outlook

The AUD/USD pair remains under pressure and at risk of falling further. In the daily chart, the pair trades below a directionless 20 SMA while it keeps pressuring a mildly bearish 100 SMA. At the same time, technical indicators remain within negative levels, although lacking directional strength.

In the near term, and according to the 4-hour chart, the pair turned neutral. It is finding near-term buying interest around 0.6670, where the 20 and the 200 SMAs converge, while the 100 SMA remains flat well above the current level. At the same time, technical indicators head nowhere at around their midlines.

Support levels: 0.6670 0.6630 0.6595

Resistance levels 0.6740 0.6775 0.6810

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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