AUD/USD Forecast: Poised to extend its advance beyond 0.7600

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7542

The Australian dollar held on to higher ground despite falling equities.
Iron ore futures plummeted after reaching fresh multi-year highs last week.
AUD/USD remains confined to tight intraday ranges near 2020 highs.

The AUD/USD pair is ending the day unchanged around the 0.7540 level but managed to post a fresh 2020 high of 0.7577. The pair remained confined to a tight intraday range despite the greenback’s swings against other rivals. Falling iron ore futures limited the aussie’s bullish potential, as the metal tumbled from fresh multi-year highs. On a positive note, the Australian currency was able to hold on to the higher ground, despite the sour tone of equities.

This Tuesday, the Reserve Bank of Australia will publish the Minutes of its latest monetary policy meeting. The document is not expected to bring surprises after policymakers remained on hold earlier this month.

AUD/USD short-term technical outlook

The AUD/USD pair is in consolidation mode, losing bullish momentum but still far from bearish. The 4-hour chart shows that the price remains above a bullish 20 SMA, which remains above the larger ones. Technical indicators eased from overbought readings but hold within positive levels, with the RSI currently consolidating around 59, indicating the absence of selling interest.

Support levels: 0.7510 0.7470 0.7425

Resistance levels: 0.7580 0.7620 0.7660

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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