AUD/USD Forecast: Stuck around 0.6900, upside limited

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6904

US-China phase one trade deal failed to impress speculative interest.
Australia to release housing-related data during the upcoming Asian session.
AUD/USD could resume decline on a break below 0.6885, the immediate support.

The AUD/USD pair recovered from a daily low of 0.6876, but once again was unable to extend gains beyond a critical Fibonacci resistance level at around 0.6915. The daily behavior indicates that the Aussie remains among the weakest currencies, as the pair was unable to advance despite dollar’s weakness and Wall Street rallying to record highs. Australia didn’t release relevant macroeconomic data but will publish November Home Loans, foreseen up by 0.4% and Investment Lending for Homes during the upcoming Asian session. China, on the other hand, will unveil minor money figures.

The announcement of phase one of the US-China trade deal, which should have been a positive factor for the pair, it remained mute. Among other things, the mentioned agreement means that China will be spending $75 billion on manufacturing imports, $50 billion on energy imports, $50 billion agriculture imports and $40-50 billion on service imports from the US.

AUD/USD short-term technical outlook

The AUD/USD pair settled just above the 0.6900 figure retaining its neutral stance in the short-term and according to the 4-hour chart, as it remains contained by moving averages, with the 200 SMA providing support at around 0.6885. Technical indicators, in the meantime, recovered from weekly lows, but lost momentum after reaching their midlines, now turning back south.

Support levels: 0.6885 0.6840 0.6800

Resistance levels: 0.6915 0.6950 0.6990

View Live Chart for the AUD/USD

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 near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February.

GBP/USD holds medium-term bullish bias above 1.3600

The GBP/USD pair trades on a softer note around 1.3605 during the early European session on Monday. Growing expectation of the Bank of England’s interest-rate cut weighs on the Pound Sterling against the Greenback.

Gold remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.