AUD/USD Forecast: Range trading set to continue near-term

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7741

Australian data beat expectations, but aussie gains were offset by weakening metals.
New Zealand and Australian markets will be closed this Monday amid ANZAC day.
AUD/USD is technically neutral, with buyers defending the 0.7700 price zone.

The AUD/USD pair posted a modest weekly advance, ending it in the 0.7740 price zone. The pair recovered on Friday alongside Wall Street, but despite the greenback’s broad weakness, remained within familiar levels and upbeat Australian data. On Friday, the country published the preliminary estimates of April Commonwealth Bank PMIs, with the manufacturing index printing at 59.6 and the services PMI hitting 58.6. Metals prices were down for a second consecutive day, somehow putting a cap to AUD/USD.

Australian and New Zealand celebrate ANZAC day this Monday, which means they won’t release macroeconomic data.

AUD/USD short-term technical outlook

The AUD/USD pair has seesawed between gains and losses throughout the week, quickly retreating from a peek beyond the 0.7800 figure. In the daily chart, the pair offers a neutral-to-bullish stance as the 20 and 100 SMA head marginally higher, converging at around 0.7670. Technical indicators hold above their midlines but lacking directional strength. The 4-hour chart shows that the pair has settled above all of its moving averages, which continue to lack directional strength. Technical indicators are also flat but above their midlines, indicating limited selling interest.

Support levels: 0.7690 0.7640 0.7605

Resistance levels: 0.7770 0.7820 0.7850

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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