AUD/USD Forecast: Dangerously close to the 0.7700 support area

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7721

Australian Retail Sales are expected to have bounced in March.
The RBA Minutes showed policymakers don’t expect to tighten at least until 2024.
AUD/USD gains bearish traction as the day comes to an end, pressured by a dismal mood.

The AUD/USD pair ended Tuesday in the red around 0.7708, after reaching 0.7815 during Asian trading hours, its highest since mid-March. The Reserve Bank of Australia published the Minutes of its latest meeting, which showed that policymakers remain committed to the “highly supportive” monetary policy, reiterating that they don’t expect to reach employment and inflation targets until 2024 at the earliest.

The pair fell alongside equities but retained the 0.7700 threshold as gold prices ticked higher. This Wednesday, Australia will publish the March Westpac Leading Index, previously at 0.02% and the preliminary estimate of March Retail Sales, foreseen at 1% after falling by 0.8$ in February.

AUD/USD short-term technical outlook

The AUD/USD pair is trading near the mentioned daily low and could extend its slide in the upcoming sessions. The 4-hour chart shows that it has broken below a now directionless 20 SMA, while technical indicators head firmly lower within negative levels. The longer moving averages remain flat below the current level. A clear break below 0.7690 should signal a bearish continuation towards the 0.7600 price zone.

Support levels: 0.7690 0.7640 0.7605

Resistance levels: 0.7730 0.7770 0.7820

View Live Chart for the AUD/USD

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

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: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

GBP/USD softens to near 1.3600 as BoE hints further rate cuts

The GBP/USD pair loses ground to near 1.3610 during the early Asian session on Monday. The Pound Sterling softens against the Greenback amid growing expectations of the Bank of England’s interest-rate cut. Traders will take more cues from the Fedspeak later on Monday.

Gold holds gains near $5,000 as China's gold buying drives demand

Gold price clings to the latest uptick near $5,000 in Asian trading on Monday. The precious metal holds its recovery amid a weaker US Dollar and rising demand from the Chinese central bank. The delayed release of the US employment report for January will be in the spotlight later this week.

Bitcoin Weekly Forecast: The worst may be behind us

Bitcoin price recovers slightly, trading at $65,000 at the time of writing on Friday, after reaching a low of $60,000 during the early Asian trading session. The Crypto King remained under pressure so far this week, posting three consecutive weeks of losses exceeding 30%.

Weekly column: Saturn-Neptune and the end of the Dollar’s 15-year bull cycle

Tariffs are not only inflationary for a nation but also risk undermining the trust and credibility that go hand in hand with the responsibility of being the leading nation in the free world and controlling the world’s reserve currency.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.