AUD/USD Forecast: Bulls taking their chances

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6236

Australian housing data came in worse-than-expected, Aussie rallied anyway.
AUD/USD neutral-to-bullish, immediate dynamic resistance at 0.6260.

The Australian dollar was among the best performers against the greenback, reaching 0.6244, its highest in almost a month. The Aussie was under selling pressure at the beginning of the day, amid news indicating that S&P cut the country’s credit rating outlook AAA from stable to negative. Also, data from Australia weighed on the local currency, as Home Loans fell by 1.7% in February, while Investment Lending for Homes declined 1.9% in the same month. Nevertheless, the pair quickly recovered, reaching higher highs on the back of a weaker greenback and the better performance of Wall Street. During the upcoming Asian session, the RBA will release the Financial Stability Review.

AUD/USD short-term technical outlook

The AUD/USD pair is trading near the mentioned high ahead of the Asian opening, with a short-term neutral-to-bullish technical stance. The 4-hour chart shows that it advanced above a bullish 20 SMA, while it is also developing above the 100 SMA. The 200 SMA is a couple of pips above the current level, providing dynamic resistance at around 0.6260. Technical indicators, in the meantime, remain within positive levels, although having lost their bullish strength.

Support levels: 0.6200 0.6165 0.6120

Resistance levels: 0.6260 0.6295 0.6330

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.

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