Market Overview

AUD/USD Forecast: At Risk Of Extending Its Decline In The Short-Term

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AUD/USD Forecast: At Risk Of Extending Its Decline In The Short-Term

AUD/USD Current Price: 0.7150

  • Gold prices eased on a stronger dollar, weighing on the Aussie.
  • Australia will publish the NAB’s Business Confidence Index for July.
  • AUD/USD at risk of extending its decline in the short-term, 0.7070 critical support.

The AUD/USD pair saw little action this Monday, ending the day as it started around the 0.7150 price zone. Intraday dollar’s advance pushed the pair down to 0.7139, while the daily high was established at 0.7183. Capping advances, oil prices edged lower on dollar’s renewed strength, with the bright metal nearing $2,020 a troy ounce. Australia didn’t publish relevant macroeconomic data on Monday, but during the upcoming Asian session, the country will unveil the NAB’s Business Confidence Index for July, previously at 1, and the NAB’s Business Conditions Index for the same period.

AUD/USD Short-Term Technical Outlook

The AUD/USD pair is trading near its daily low and bearish according to intraday technical readings. The 4-hour chart shows that it remained below a bearish 20 SMA, and barely holding above a bullish 100 SMA, this last providing dynamic support around the mentioned daily low. Technical indicators remain within negative levels and gaining strength downwards, further supporting an upcoming leg lower. A strong static support level comes at 0.7070, and a break below this last seems unlikely at the time being.

Support levels: 0.7140 0.7110 0.7070  

Resistance levels: 0.7185 0.7220 0.7260

Image sourced from PIxabay

 

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