AUD/USD Forecast: Short-term perspective improves

Aussie manages to erase post-RBA minutes losses.
AUD/USD advances and approaches key resistance at 100-day SMA.

Valeria Bednarik FXStreet

The AUD/USD managed to erase Asian session losses and climbed back above 0.6800 during the New York trade, helped by a weaker greenback.

The Australian dollar came under pressure on Tuesday, with AUD/USD hitting a low of 0.6785, after minutes from the latest Reserve Bank of Australia meeting showed that the central bank did consider cutting rates amid global slowdown concerns. However, the AUD/USD managed to shrugged-off the dovish minutes and climbed to a five-day high of 0.6835.

AUD/USD technical picture has turned slightly bullish in the 4-hour chart, with indicators in positive territory and the last three candles closing above the 200-period SMA. However, the perspective is less optimistic in the daily chart, with indicators in negative territory and the AUD/USD trading below the 100-day SMA (0.6838). A breakout of this level, could send the pair to the next significant resistance at 0.6900, where the psychological level converges with a long-term descendent trendline.

On the flip side, immediate supports are seen at the 0.6800/05 area (20-period SMA in 4-hour chart), and last week’s low at 0.6770 ahead of 0.6720.

Support levels: 0.6805 0.6770 0.6720

Resistance levels: 0.6840 0.6860 0.6900

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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