AUD/USD Forecast: Resuming its advance, 0.7770 key resistance

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7745

An improved market’s mood put the greenback under selling pressure.
Australian Q4 inflation is foreseen stable and well below RBA’s target.
AUD/USD is back bullish in the near-term, could rally beyond 07815.

The AUD/USD pair resumed its advance this Tuesday, reaching 0.7753 and trading nearby as the day comes to an end. The pair surged during European trading hours amid an improvement in the market’s mood, which played against the greenback. The pair retained gains despite the poor performance of Wall Street, as the US three major indexes struggled to post intraday gains.

Australia returns from a holiday with the release of Q4 inflation data. The Consumer Price Index is foreseen unchanged at 0.7% YoY while the RBA Trimmed Mean CPI is also expected unchanged from Q4 2020 at 1.2%.

AUD/USD short-term technical outlook

The AUD/USD pair is bullish in the near-term and according to the 4-hour chart. It has managed to recover above its 20 and 100 SMAs, which stand a few pips below the current level. Technical indicators entered positive territory, with the Momentum still advancing but the RSI flat around 56. The pair has room to advance further, with bulls likely taking over once above 0.7770, the immediate resistance level.

Support levels: 0.7725 0.7690 0.7640

Resistance levels: 0.7770 0.7815 0.7850

View Live Chart for the AUD/USD

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

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.

EUR/USD holds firm above 1.1900 as US NFP looms

EUR/USD holds its upbeat momentum above 1.1900 in the European trading hours on Wednesday, helped by a broadly weaker US Dollar. Markets could turn cautious later in the day as the delayed US employment report for January will takes center stage.

GBP/USD recovers losses despite rising UK political risks, BoE rate cut bets

Pound Sterling advances against the US Dollar after registering modest losses in the previous session, trading around 1.3650 during the Asian hours on Wednesday. The pair could extend losses as the Pound Sterling faces pressure from rising political risks in the UK and growing expectations of near-term Bank of England rate cuts.

Gold sticks to gains near $5,050 as focus shifts to US NFP

Gold holds moderate gains near the $5,050 level in the European session on Wednesday, reversing a part of the previous day's modest losses amid dovish US Federal Reserve-inspired US Dollar weakness. This, in turn, is seen as a key factor acting as a tailwind for the non-yielding yellow metal ahead of the critical US NFP release.

Bitcoin, Ethereum and Ripple show no sign of recovery

Bitcoin, Ethereum, and Ripple show signs of cautious stabilization on Wednesday after failing to close above their key resistance levels earlier this week. BTC trades below $69,000, while ETH and XRP also encountered rejection near major resistance levels. With no immediate bullish catalyst, the top three cryptocurrencies continue to show no clear signs of a sustained recovery.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

BNB prolonged correction signals deeper bearish momentum

BNB (BNB), formerly known as Binance Coin, is trading below $618 on Wednesday, marking the sixth consecutive day of correction since the weekend. The bearish price action is further supported by rising short bets alongside negative funding rates in the derivatives market.