AUD/USD Forecast: Neutral-To-Bearish In The Short-Term, Could Recover Once Above 0.6925

AUD/USD Current Price: 0.6881

  • A scarce Australian macroeconomic calendar exacerbated range-trading around AUD/USD.
  • With the coronavirus pandemic under control, the Australian dollar has limited bearish potential.
  • AUD/USD is neutral-to-bearish in the short-term, could recover once above 0.6925.

The AUD/USD pair has been unable to attract investors this Thursday, spending the day in a 40 pips’ range and ending it little changed around 0.6880. The absence of Australian macroeconomic releases and a holiday in China exacerbated range-trading at the beginning of the day, while for once, the pair ignored stocks’ intraday movements. Australia is in a privileged situation when considering the coronavirus pandemic, as the number of new daily cases remains low, and the situation seems under control, allowing local businesses to resume activity. The country won’t release macroeconomic data this Friday.

AUD/USD short-term technical outlook

The AUD/USD pair is neutral-to-bearish according to technical readings in the 4-hour chart, although selling interest seems quite limited at the time being. The 4-hour chart shows that the pair is developing below the 20 and 100 SMA, both converging around 0.6910, while the 200 SMA keeps heading higher below the current level. The Momentum indicator maintains its bearish slope within negative levels, while the RSI is stable around 45, skewing the risk to the downside without confirming another leg lower.

Support levels: 0.6850 0.6810 0.6770

Resistance levels: 0.6925 0.6970 0.7010

View Live Chart for the AUD/USD

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