AUD/USD Forecast: Holding around 0.6900 no signs of bullish potential

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6903

Chinese trade data mostly positive, but Aussie buyers unimpressed.
US equities seesawed around their opening levels as investors shifted to cautious mode.
AUD/USD holding below a critical Fibonacci resistance level.

The AUD/USD pair is ending this Tuesday little changed at around 0.6900, unable to extend gains beyond its weekly high of 0.6919. Australia didn’t release macroeconomic data that could affect the pair, and Chinese figures were unable to trigger some action. China published its December trade balance, which posted a surplus of $46.79B, below the $48.0B expected, although exports were up by 7.6%, while imports increased by 16.3% in the same period, beating the market’s expectations. Equities were firmly up with London’s opening, but the positive momentum failed, with US indexes struggling around their opening levels at the end of the day. Nor Australia, neither China, will publish relevant data this Wednesday.

AUD/USD short-term technical outlook

The AUD/USD pair is heading into the Asian session trading just below the 61.8% retracement of its latest daily decline, offering a neutral-to-positive stance in the short-term. The 4-hour chart shows that it continues developing between moving averages, which offer modest upward slopes. Technical indicators, in the meantime, lack directional strength but hold within positive levels. The risk will turn south on a break below 0.6885, the immediate support.

Support levels: 0.6885 0.6840 0.6800

Resistance levels: 0.6915 0.6950 0.6990

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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