AUD/USD Forecast: Bulls retain control, aim for 0.8000

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7912

The sour tone of equities undermined the aussie’s demand at the end of the day.
Australian Wage Price Index is foreseen at 0.3% QoQ in the last quarter of 2020.
AUD/USD trades around 0.7910 and is still poised to test the 0.8000 price zone.

The AUD/USD pair reached 0.7934, a fresh three-year high at the beginning of the day, to finish the day around the 0.7900 figure, as the sour tone of Wall Street undermined the aussie’s demand but fell short of backing the greenback. Gold prices posted modest intraday declines, also undermining the AUD/USD bullish case.

This Wednesday, Australia will publish the Wage Price Index for the last quarter of 2020, which is expected to have risen by 0.3% quarterly basis, recovering from 0.1% in Q3. The annual reading, on the other hand, is seen at 1.1%, down from 1.4%.

AUD/USD short-term technical outlook

The AUD/USD pair is holding on to gains and still has room to reach the 0.8000 threshold. In the 4-hour chart, the 20 SMA heads firmly north around 0.7865 while the 100 SMA crosses above the 200 SMA far below it. The Momentum indicator heads firmly lower and nears its midline, rather indicating limited bullish strength at the time being instead of supporting a slide. The RSI consolidates near overbought readings, suggesting absent selling interest.

Support levels: 0.7865 0.7820 0.7770

Resistance levels: 0.7930 0.7965 0.8000

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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