AUD/USD Forecast: Bearish In The Near-Term, Additional Declines Expected

AUD/USD Current Price: 0.7705

• Australian markets to be closed in observance of the Australia Day.
• A dismal market mood pushed the pair lower in the American session.
• AUD/USD is bearish in the near-term, additional declines expected.

The AUD/USD pair fell to 0.7682, its lowest in a week during the American session, but managed to regain the 0.7700 level ahead of the daily close. The pair traded alongside sentiment, falling early in the US session as US indexes plummeted on speculation further coronavirus relief would be delayed a month or two. Australia started the week with an empty calendar, with activity in the country set to remain reduced on Tuesday amid the observance of Australia Day.

AUD/USD Short-Term Technical Outlook

The AUD/USD pair is at risk of extending its decline despite its latest recovery. The 4-hour chart shows that the 20 and 200 SMAs converge around 0.7735, providing dynamic resistance. The 200 SMA maintains its bullish slope around 0.7640. Technical indicators hold within negative levels without signs of bearish exhaustion. A steeper decline is to be expected once below the 0.7640 price zone.

Support levels: 0.7690 0.7640 0.7600  

Resistance levels:  0.7735 0.7770 0.7815

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