AUD/USD: struggling for direction, upside limited

Valeria Bednarik FXStreet

AUD/USD Current price: 0.8013

The Aussie regained the 0.8000 level in London trading hours, getting a boost from Pound, which soared over 200 pips against the dollar, dragging the American currency lower across the board. The pair has saw little action overnight, as the Australian calendar remained empty, and the pair reacted little to risk-related news, as North Korea tested another missile that flew over Japan, and landed in the Japanese sea, prompting demand for safe-haven assets and another UN emergency meeting. The pair traded as high as 0.8030 before pulling back modestly now waiting for US data for the next move. From a technical point of view, the 4 hours chart shows that, despite the price is above its 20 SMA, technical indicators remain within negative territory and with limited directional strength, suggesting that the upside is still contained. A big disappointment from US figures, however, can push the price through the daily high, with scope then to continue advancing, up to 0.8060 first, and towards the 0.8100 region later on the day. To the downside, the key support continues to be 0.7965, with a weekly close below it anticipating further declines for next week.

Support levels: 0.8000 0.7965 0.7930

Resistance levels: 0.8030 0.8060 0.8100

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.

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