AUD/USD finds support at 0.7720, holds a bearish intraday bias
- AUD/USD down for the day, still above the key 20-day moving average.
- US dollar gains momentum, recovery remains limited.
The AUD/USD pair is falling on Wednesday after rising sharply on Tuesday. It bottomed at 0.7720 after the beginning of the American session and then bounced to the upside, rising to 0.7755. As of writing, it trades at 0.7740, still holding a bearish intraday bias after begin unable to rise back above the 20-hour moving average at 0.7755/60.
The greenback appears to be recovering strength as AUD/USD moves off the recent peak. The DXY is up by 0.23%, at 90.30 after making a retreat to 90.15. Equity prices in Wall Street are posting mixed results, and US yields are lower. The 10-year fell to 1.09%, the lowest level since January 8.
Despite lower yields, the dollar is holding to modest gains. Economic data from the US showed annual inflation reach in December 1.4% slightly above the 1.3% expected. In a few hours, the Federal Reserve will release the Beige Book. On Thursday, Chinese trade data is due.
From a technical perspective, AUD/USD remains in a bullish trend, but in the short-term, it appears to be losing momentum. Below 0.7700, a key support is seen at 0.7660, the 20-day moving average. On the upside, above 0.7760 the Aussie could point to a test of the 0.7800 area.
Technical levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
