AUD/USD Forecast: Modest buying at the bottom of the range

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7728

Australian May Consumer Inflation Expectations are foreseen at 3.6%.
Gold prices recovered some ground, providing support to the Aussie.
AUD/USD is neutral-to-bearish in the near-term, could near 0.7600.

The AUD/USD pair traded as low as 0.7687, bouncing during US trading hours to settle in the 0.7730 price zone. The recovery was backed by US equities and gold prices, which recovered during the American session, with US indexes finishing the day in the green and spot gold reaching $ 1,825 a troy ounce. Australia will publish this Friday, May Consumer Inflation Expectations, foreseen at 3.6% from 3.2% in the previous month.

AUD/USD short-term technical outlook

The AUD/USD pair maintains the sour tone, and could still fall to fresher lows below the 0.7700 level. The 4-hour chart shows that the pair is struggling to remain above a flat 200 SMA, but also that the 20 SMA has accelerated its decline above the current level. Technical indicators lack directional strength, holding within negative levels. The pair has met buyers at the bottom of its latest range, but the risk of a fresh leg south has increased.

Support levels: 0.7690 0.7650 0.7620

Resistance levels: 0.7770 0.7820 0.7860

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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