AUD/USD Forecast: Under pressure, but 0.7700 holds for now

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7733

Spot gold fell to $1,690 a troy ounce, a fresh 2021 low.
Australian trade surplus soared in January to 10.142 million.

The AUD/USD pair edged lower after being unable to hold above the 0.7800 level, falling on renewed Treasury yields’ demand and the subsequent dollar’s strength. The pair approached the 0.7700 figure as a stronger greenback coupled with plummeting equities. US indexes are down around 2.0% each after Fed Powell’s words. Also, gold prices reached fresh 2020 lows, as spot plummeted to $ 1,690.33 a troy ounce.

Australia posted its January Trade Balance early on Thursday, which posted a record surplus of 10.142 million, as imports decreased by 2% while exports rose 6%. The country will publish the February AIG Performance of Services Index this Friday, previously at 54.3.

AUD/USD short-term technical outlook

The AUD/USD pair bounced just modestly from a daily low at 0.7708, but the overall risk is skewed to the downside. In the 4-hour chart, the pair has broken below all of its moving averages, which anyway lack directional strength. Technical indicators head firmly lower within negative levels, in line with another leg lower, mainly on a break below 0.7690, the immediate support level.

Support levels: 0.7690 0.7650 0.7610

Resistance levels: 0.7770 0.7810 0.7845

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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