AUD/USD Forecast: Limited bearish scope despite losing the 0.7700 level

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7666

Australian dollar weighed by the sour tone of US equities.
The Australian Commonwealth Bank Manufacturing PMI resulted at 55.7 in December.
AUD/USD bearish potential seems limited even in the near-term.

The AUD/USD pair retreated from a daily high of 0.7740 during the American session, dragged by the sour tone of US equities. The pair fell to 0.7641, but as stocks pared their slides, the pair got to recover some ground, now trading around the 0.7670 level. Australia published at the beginning of the day the December Commonwealth Bank Manufacturing PMI, which resulted at 55.7, below the expected 56. The country also released the December RBA Commodity Index, which came in at 11.7% YoY. Australia won’t publish relevant data this Tuesday.

AUD/USD short-term technical outlook

The AUD/USD pair has a limited bearish potential according to the 4-hour chart, as technical indicators pared their slides after approaching their midlines, holding above them. The pair has fallen below its 20 SMA, but the larger ones maintain their bullish slopes well below the current level, indicating a limited bearish interest at the time being. A steeper decline could be expected on a break below 0.7605.

Support levels: 0.7640 0.7605 0.7570

Resistance levels: 0.7700 0.7740 0.7785

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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