AUD/USD falls back to 0.7200 after failed Monday jumpstart

Monday's early rise slumped on fresh USD-bidding, and the AUD/USD heads into a quiet Tuesday session still trapped in recent ranges.
The Aussie has remained more or less within the same trading region for 15 trading days straight as buyers continue to sputter out at the critical 200-day moving average.

Joshua Gibson FXStreet

The AUD/USD opened the new trading week on Monday with a bullish twist as risk appetite began a meager recovery, but the mood couldn't last and reversing Dollar flows in Monday's US market session saw the majority of risk-based pairs bottoming out of their early gains, and the Aussie-Dollar pairing sees itself trading back into Friday's lows just above the 0.7200 handle.

Tuesday brings a notable lack of data for the Aussie on the economic calendar, and the Antipodean will have to push into the mid-week fully exposed to US Dollar flows, which could be a bad omen for the AUD, with trade tensions back on the rise with US President Donald Trump again antagonizing the airwaves in the run-up to his sideline meeting with China's Xi Jinping at the upcoming G20 summit.

AUD/USD Levels to watch

The technical stance for the AUD/USD is lending itself to the potential for further downside plays with key indicators still moving towards the lower bound and moves to the long side evaporating quickly, according to FXStreet Chief Analyst Valeria Bednarik: "in the daily chart, technical indicators have pulled down sharply from overbought readings and are currently nearing their midlines, the Momentum maintaining a strong downward slope but the RSI with limited downward strength. In the mentioned chart, the 20 DMA maintains a strong bullish slope, now converging with the mentioned 38.2% retracement reinforcing the relevance of the support. Below the 0.7200 figure, the next supports come at 0.7150 and 0.7100, while below this last, the path is clear toward the yearly low. Resistances are 0.7300 and this month high at 0.7340, with gains beyond this last still unclear."

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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