AUD/USD Forecast: Bullish momentum keeps fading

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6831

Australian data missed the market’s expectations, market starts to drop the Aussie.
AUD/USD at risk of resuming its decline on a break below 0.6800.

The AUD/USD pair edged lower this Thursday, but remained within familiar levels and not far from its weekly high. Australian data released at the beginning of the day came in worse than anticipated, weighing on the Aussie. The October Trade Balance surplus was of 4502M, well below the 6100M expected, with exports down by 5.0% in the month, and imports unchanged. Also, Retail Sales remained flat in the same month, missing the market’s expectation of a 0.3% gain. The poor performance of US equities and the lack of progress in a US-China trade deal, weighed the pair ahead of the close, although the decline was limited by the absence of dollar’s demand.

Australia will release this Friday the November AIG Performance of Construction Index, previously at 43.9.

AUD/USD short-term technical outlook

The AUD/USD pair has continued to lose bullish momentum despite the modest intraday slide. In the 4-hour chart, the pair is now below its 20 and 200 SMA, both converging just above the current level. The 100 SMA, remains directionless around the 0.6800 figure, while technical indicators hold within neutral levels, lacking clear directional strength. The pair needs to leave the 0.6800/0.6865 to gain a certain directional momentum, with better odds of a bearish breakout.

Support levels: 0.6800 0.6770 0.6730

Resistance levels: 0.6865 0.6890 0.6920

View Live Chart for the AUD/USD

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.

EUR/USD extends its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

XRP struggles around $1.40 despite institutional inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.