AUD/USD Forecast: Direction depending on the greenback
AUD/USD Current Price: 0.6166
- Gold prices consolidate on Friday, holding well above the 1,6000 threshold.
- Aussie held on to gains despite plummeting stocks and easing government bond yields.
- AUD/USD bullish potential limited, but the rally can continue on dollar’s weakness.
The AUD/USD pair surged to a fresh weekly high of 0.6199 on Friday, retaining most of its gains ahead of the close, despite increased risk-off. Wall Street plunged, while US Treasury yields closed near record lows. However, the greenback also plummeted helping to keep the pair afloat. Gold prices held ground, with spot ending the day around$1,626 a troy ounce. Australia has an empty macroeconomic calendar this Monday, with nothing of relevance throughout the week.
AUD/USD short-term technical outlook
The AUD/USD pair has advanced for a sixth consecutive day on Friday, but chances of additional gains are limited, according to the daily chart. In the mentioned time-frame, the rally stalled below a still bearish 20 DMA, which remains far below the larger ones. Technical indicators advance, recovering from extreme oversold levels, but still below their midlines. In the 4-hour chart, the pair has remained above a bullish 20 SMA but met sellers around a 100 SMA. Technical indicators hold within positive levels, skewing the risk to the upside without confirming further advances.
Support levels: 0.6125 0.6070 0.6030
Resistance levels: 0.6200 0.6240 0.6280
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.
