Market Overview

AUD/USD Forecast: Failed Attempt To Regain 0.7200 Further Favors A Downward Extension

AUD/USD Forecast: Failed Attempt To Regain 0.7200 Further Favors A Downward Extension

AUD/USD Current Price: 0.7154

  • The good performance of equities and increased demand for the greenback kept the pair ranging.
  • The Australian macroeconomic calendar will remain empty until next Wednesday.
  • AUD/USD failed attempt to regain 0.7200 further favors a downward extension.

The AUD/USD pair remained unchanged for a third consecutive day, ending this Monday in the 0.7160 price zone. At the beginning of the day, the pair reached a daily high of 0.7203 on the back of risk-appetite, underpinned by a rally in equities. The greenback, however, resumed its advance during US trading hours, despite US indexes followed the lead of its overseas counterparts and reached record highs. The Australian macroeconomic calendar has been empty so far this week and will remain so until Wednesday when the country will publish Q2 Construction Work Done, seen at -5.8% from -1% in the first quarter of the year.

AUD/USD Short-Term Technical Outlook

The AUD/USD pair retains its neutral-to-bearish stance, despite holding within familiar levels. The 4-hour chart shows that it tried to surpass its 20 and 100 SMA, but settled below them, both converging around 0.7180. In the mentioned chart, the Momentum indicator remains flat around its midline, while the RSI indicator heads lower within negative levels. A steeper decline is to be expected on a break below 0.7135, the immediate support level.

Support levels: 0.7135 0.7090 0.7050

Resistance levels: 0.7200 0.7245 0.7280

Image sourced from Pixabay


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