AUD/USD Forecast: Pressure on the Aussie continues

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7054

The Australian dollar remained under selling pressure despite Wall Street’s bounce.
AUD/USD is still biased lower and poised to test the 0.7000 threshold.

The AUD/USD pair recovered from a fresh two-month low of 0.7015 but was unable to turn positive, ending the day around 0.7060. The sour market mood that prevailed for most of the day and the absence of Australian macroeconomic data kept the pair under pressure, although receding dollar’s demand helped it bounce ahead of the daily close. Nevertheless, the Aussie was unable to turn positive against its American rival, even despite a nice comeback in Wall Street, as the three major indexes closed in the green.

AUD/USD short-term technical outlook

The AUD/USD pair remains biased lower according to intraday technical readings. The 4-hour chart shows that technical indicators have corrected extreme oversold readings but remain near their recent lows, lacking directional strength. The same chart shows that the 20 SMA maintains its bearish slope above the current level and well below the larger ones. The pair would need to advance beyond 0.7110 to shrug off the bearish bias, at least in the short-term.

Support levels: 0.7040 0.7000 0.6965

Resistance levels: 0.7110 0.7150 0.7190

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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