AUD/USD Forecast: Bulls ready to retake the 0.7200 threshold

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7186

Australian macroeconomic data was slightly better than anticipated.
Rallying Wall Street provided support to the Aussie during US trading hours.
AUD/USD topped at 0.7220, renewed buying interest could see it reaching 0.7300.

The AUD/USD pair trades around 0.7180, up for the day as the positive tone of Wall Street provided support to the pair in the final trading session of Wednesday. The pair peaked at the beginning of the day at 0.7221, its highest in three weeks, amid the broad dollar’s weakness in the heat of the US presidential election. Data coming from Australia passed unnoticed, although it was encouraging as the October AIG Performance of Construction Index came in at 52.7 from 45.2 in the previous month. Also, September Retail Sales were upwardly revised from -1.5% to -1.1%. Australia will publish the September Trade Balance this Thursday, previously at 5114M.

AUD/USD short-term technical outlook

The AUD/USD pair is up for a third consecutive day and poised to extend its gains according to intraday technical readings. The 4-hour chart shows that the pair is above all of its moving averages, with the 20 SMA heading firmly higher, although below the larger ones. Technical indicators are retreating just modestly from overbought readings, reflecting the absence of volumes at this time of the day rather than suggesting an upcoming decline.

Support levels:0.7125 0.6990 0.6950

Resistance levels: 0.7220 0.7265 0.7300

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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