AUD/USD Price Analysis: Aussie capped below previous support at 0.7095

AUD/USD's recovery attempt has been capped right below 0.7100
The previous support level turned resistance and the 50-hour SMA are limiting upside attempts.
On the downside, 0.7055 level is supporting the pair.

Guillermo Alcala FXStreet

The Australian dollar has dropped nearly 2% this week weighed by US dollar strength amid a generalized rush for safety. The pair extended its reversal from last week’s highs at 0.7245, to reach two-week lows at 0.7050 before posting a mild recovery attempt on Friday, that has been capped right below 0.7100.

Hourly charts show the pair moving practically flat over the last sessions, with upside attempts capped below 0.7095, where the pair has found resistance on a former support level (October 6 low) and also the 50-hour SMS, which has been holding the pair down previously.

On the upside, a convincing break beyond the mentioned 0.7095 level might increase bullish momentum, driving the pair towards 0.7145 (October 15 high) and 0.7210/ 20 (October 13 high/intraday level).

On the flipside, initial support lies at 0.7055 (October 15 low). Before here, the pair would resume the downtrend heading towards 0.7030 (September 28 low) and 0.7000 (September 25 low).

AUD/USD hourly chart

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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