AUD/USD Forecast: Pressuring the lower end of the range

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7708

Australia and China celebrate bank holidays on Monday.
US indexes bounced ahead of the close, helping AUD/USD to settle above 0.7700.
AUD/USD keeps trading within familiar levels with the risk skewed to the downside.

The AUD/USD pair fell by the end of the week to settle just above 0.7700, not far from a daily low of 0.7687. The decline could be attributed to resurgent demand for the American currency on the back of solid US data, which points to an underway economic comeback. The pair traded alongside Wall Street, which managed to close the day with modest gains.

The week will start with holidays in Australia and China, which means no relevant macroeconomic data and limited trading volumes. The dollar has a chance of gapping higher at the opening, mainly against high-yielding rivals.

AUD/USD short-term technical outlook

The AUD/USD pair holds within familiar levels, although the risk is skewed to the downside. The daily chart shows that the price is below directionless 20 and 100 SMAs, both within a tight 20 pips range. Technical indicators have turned south from around their midlines, heading lower, although without enough momentum to suggest another slide. In the 4-hour chart, the pair has settled below all of its moving averages, while technical indicators stabilized at daily lows within negative levels.

Support levels: 0.7675 0.7640 0.7605

Resistance levels: 0.7730 0.7780 0.7820

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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