AUD/USD Forecast: Possible bullish extension toward 0.7600

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7527

Australian lockdowns amid limited immunization weigh on the aussie.
Profit-taking and risk-appetite undermined the greenback ahead of the close.
AUD/USD is in recovery mode in the near term, but its bullish potential is limited.

The AUD/USD pair recovered on Friday to close the week in the red in the 0.7520 price zone. Before recovering, however, the pair set a fresh 2021 low of 0.7444. The aussie suffered from the latest coronavirus-related headlines coming from the country, as several new cases have forced local governments to impose lockdowns. The immunization campaign in the country is going slow, as only 4% of the population is fully vaccinated. Meanwhile, the greenback benefited from solid employment figures, easing ahead of the close on profit-taking coupled with risk-appetite.

Australia published housing-related data on Friday, which came in mixed. Home Loans contracted in May from 4.3% to 1.9%, while Investment Lending for Homes increased from 2.1% to 13.3%. The country will publish on Monday the June AIG Performance of Construction Index, the Commonwealth Bank Services PMI for the same month, and the final version of May Retail Sales, expected to be confirmed at 0.1%.

AUD/USD short-term technical outlook

The AUD/USD pair is technically bearish, according to the daily chart. The pair is developing below all of its moving averages, with the 20 SMA heading firmly lower between the longer ones. Technical indicators have bounced from oversold readings but remain well below their midlines. In the near-term, and according to the 4-hour chart, the advance may extend as the pair has moved well above its 20 SMA, which is currently flat, while technical indicators maintain their bullish slopes within positive levels. The longer moving averages, however, head firmly lower above the current price, limiting the upside.

Support levels: 0.7485 0.7440 0.7400

Resistance levels: 0.7550 0.7595 0.7630

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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