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AUD/USD Forecast: Maintains Bullish Short-Term Bias

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AUD/USD Forecast: Maintains Bullish Short-Term Bias
  • AUD/USD edges lower on Wednesday but maintains bullish short-term bias.
  • A break above 0.7780 needed to regain upward momentum.

The AUD/USD retreated slightly on Wednesday amid broad US dollar strength despite lower US yields. The pair dropped to a daily low of 0.7720, 100 pips below its nearly 3-year peak struck last week at 0.7820, but it managed to remain within its recent range as it recovered some ground by the end of the American session.  On Thursday, investors will be watching Chinese trade balance data, which could trigger some action on the aussie.

AUD/USD Short-Term Technical Outlook

Technically speaking, the AUD/USD maintains a bullish short term bias with indicators in positive territory in the 4-hour chart and the price struggling to hold above the 50 and 20 SMAs, which offer immediate support at the 0.7730 zone. Loss of this level could push the AUD/USD to retest weekly lows at the 0.7665, which converges with the 100 SMA. On the flip side, recovery of the 0.7780 area could pave the way to its 34-month peak of 0.7820. Above this point, next resistance is seen at the 0.7850-60 area.

Support levels: 0.7730 0.7665 0.7620

Resistance levels: 0.7780 0.7820 0.7850

 

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