AUD/USD Forecast: Head & Shoulders figure about to be confirmed

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7609

Most Asian markets will celebrate Easter Monday, price action could be choppy.

Stocks strength limited AUD/USD declines at the end of the week.

AUD/USD is at risk of falling further, needs to break below 0.7531.

The AUD/USD pair finished the week a couple of pips above the 0.7600 level, down for a third consecutive week. The pair managed to bounce on Thursday from a fresh 2021 low of 0.7531, but decreased volumes on Good Friday left it confined to a tight range throughout the last trading day of the week. US stocks futures surged at the end of the week following upbeat US employment data, limiting AUD/USD downside.

As it happens in Europe, several Asian countries, including Australia and New Zealand, celebrate Good Monday, with local markets closed. However, Australia will publish the March AIG Performance of Construction Index, previously at 57.4, and TD Securities Inflation for the same month.

AUD/USD short-term technical outlook

Technical readings in the daily chart for the AUD/USD pair indicate that the risk is skewed to the downside. The pair is developing below a bullish 100 SMA, which caps advances, while the 20 SMA heads south above it. Indicators lack directional strength but remain well into negative territory. The 4-hour chart shows that the pair struggles around a mildly bearish 20 SMA while below the longer ones, which also head lower. Technical indicators lack directional strength, stuck around their midlines. The pair is developing a H&S formation, with the necking at 0.7560. A break below the mentioned weekly low will likely confirm the figure and imply a steeper slide ahead.

Support levels: 0.7560 0.7515 0.7470

Resistance levels: 0.7620 0.7665 0.7710

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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