AUD/USD extends weekly losses and drops below 0.7300

The AUD/USD continues falling despite an improved market sentiment on news from Ukraine.
Ukraine would not insist on joining NATO – AFP.
AUD/USD Price Forecast: In the long-term neutral-upward biased but might print a leg down towards the 50% Fibo, confluence with the 0.7200 mark.

Christian Borjon Valencia FXStreet

The AUD/USD slides for the second consecutive day, despite improved mood in the financial markets was spurred by an announcement of Ukraine not insisting on joining NATO, as reported by AFP. However, at the time of writing, the AUD/USD is trading at 0.7280, still down 0.47%.

Earlier in the day, the market mood was dismal, weighed by no advancement on negotiations between Russia-Ukraine. However, recent developments linked to one of Russian President Vladimir Putin’s conditions to a ceasefire, appear to have been fulfilled, in what seems to be a nod to Russia to remain neutral.

US equity markets jumped off the lows and reacted positively to the headlines, with main indexes gaining between 1.06% and 2.13%. Gold retraced from daily highs in the commodities complex, while US crude oil benchmark WTI is almost flat, though above $121 per barrel. Meanwhile, as portrayed by the US Dollar Index, the greenback drops 0.30%, sitting at 99.000.

In the overnight session, news from the European Union (EU) getting ready to jointly issue a bond on a considerable scale to finance energy easied the market mood some. However, demand for safe-haven peers and rising US Treasury yields put a lid on the AUD/USD.

The economic docket for both countries lacks the market-moving news expected by market players. Around 22:30 GMT, Reserver Bank of Australia (RBA) Governor Lowe would cross the wires, while on Wednesday, the US economic docket would feature JOLTs Jobs Openings, expected at 10.96M.

AUD/USD Price Forecast: Technical outlook

During the overnight session for North American traders, the AUD/USD jumped off Monday’s lows around 0.7313, reached a daily high around 0.7347, subsequently dipped below the S1 daily pivot point at 0.7244, to then stabilize around 0.7280.

The AUD/USD remains neutral-upward biased, but in the near-term, a leg down to the 50% Fibonacci retracement at 0.7204, an area that confluences with the 100 and the 50-day moving averages (DMAs), might be on the cards. That said, the AUD/USD first support would be the 38.2% Fibonacci level at 0.7260. Once cleared, the AUD/USD would reach the abovementioned level.

AUD/USD

Overview
Today last price	0.7280
Today Daily Change	-0.0045
Today Daily Change %	-0.53
Today daily open	0.7318

Trends
Daily SMA20	0.7217
Daily SMA50	0.7192
Daily SMA100	0.7235
Daily SMA200	0.7322

Levels
Previous Daily High	0.7441
Previous Daily Low	0.731
Previous Weekly High	0.7381
Previous Weekly Low	0.7158
Previous Monthly High	0.7286
Previous Monthly Low	0.7032
Daily Fibonacci 38.2%	0.7361
Daily Fibonacci 61.8%	0.7391
Daily Pivot Point S1	0.7272
Daily Pivot Point S2	0.7226
Daily Pivot Point S3	0.7141
Daily Pivot Point R1	0.7403
Daily Pivot Point R2	0.7487
Daily Pivot Point R3	0.7534

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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