AUD/USD Forecast: Needs To Recover Above 0.7640 To Recover Its Bullish Potential

AUD/USD Current Price: 0.7596

• A strong bounce in US equities helped AUD/USD to trim most of its intraday losses.
• Australia will publish the preliminary estimate of November Retail Sales.
• AUD/USD needs to recover above 0.7640 to recover its bullish potential.

The AUD/USD pair gapped lower at the weekly opening, dragged by a dismal market mood, and hit a daily low at 0.7461 before changing course during US trading hours. The pair now trades around 0.7590, bouncing alongside US stocks.  Wall Street plummeted in pre-opening operations but trimmed most of its intraday losses after the close, helped by US stimulus news.

Australia didn’t publish macroeconomic data at the beginning of the week, but the country will release the preliminary estimate of November Retail Sales, previously at 1.4% MoM.

AUD/USD Short-Term Technical Outlook

The AUD/USD pair has limited bullish potential at the current level. The 4-hour chart shows that it bounced nicely from around a bullish 100 SMA, now trying to move above a flat 20 SMA. Technical indicators corrected extreme oversold conditions, but the Momentum indicator remains below its midline while the RSI indicator lost directional strength around its midline. Bulls will have better chances if the pair recovers above the 0.7640 resistance level.

Support levels: 0.7550 0.7510 0.7470

Resistance levels: 0.7600 0.7640 0.7675

View Live Chart for the AUD/USD

Image sourced from Pixabay