Market Overview

AUD/USD Forecast: Needs To Retake The 0.7120 Area To Be Able To Extend Gains

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AUD/USD Forecast: Needs To Retake The 0.7120 Area To Be Able To Extend Gains

AUD/USD Current Price: 0.7065

  • Easing demand for the American dollar helped spot gold to reach the 1,880.00 price zone.
  • Speculative interest is still unwilling to give up on the greenback.
  • AUD/USD needs to retake the 0.7120 area to be able to extend gains.

The AUD/USD pair has recovered some ground this Monday, trading ahead of the Asian opening near a daily high of 0.7073. The advance, however, was insignificant in terms of trend, moreover considering that global equities finished the day with substantial gains. Somehow, the tepid AUD/USD advance confirms investors are not willing to unwind dollar longs. The better market mood also helped gold, as the bright metal neared $1,880.00 a troy ounce, reaching a fresh 3-day high.  Meanwhile, the Australian macroeconomic calendar will remain empty until next Wednesday.

AUD/USD Short-Term Technical Outlook

The AUD/USD pair seems poised to extend its advance, at least in the short-term. The 4-hour chart shows that the pair is now developing above a bearish 20 SMA, while technical indicators maintain their bullish slopes, the Momentum above its midline and the RSI at around 45.  Failure to advance sustainably beyond 0.7120, however, could see the pair returning to the bearish path and attempt a break below 0.7000.

Support levels: 0.7040 0.7000 0.6965  

Resistance levels: 0.7085 0.7120 0.7165

View Live Chart for the AUD/USD

Image sourced from Pixabay

 

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