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AUD/USD Forecast: In A Corrective Decline, Further Slides Expected Once Below 0.7865

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AUD/USD Forecast: In A Corrective Decline, Further Slides Expected Once Below 0.7865

AUD/USD Current Price: 0.7914

  • Risk-related sentiment saw AUD/USD swing between a 140 pips range.
  • Australian macroeconomic data keeps surpassing the market’s expectations.
  • AUD/USD is in a corrective decline, further slides expected once below 0.7865.

The AUD/USD pair hit 0.8006, a three-year high, retreating afterwards to plummet alongside Wall Street to 0.7872. The pair started the day with a strong footing as risk appetite weighed on the greenback, but the latter got an unexpected boost from a Treasury auction which sent yields to fresh highs and equities into the deep red.

Earlier in the day, Australia published Q4 Private Capital Expenditure, which resulted at 3%, much better than the previous -3% and largely above the 0% expected. This Friday, the country will release January Private Sector Credit.

AUD/USD Short-Term Technical Outlook

The AUD/USD pair is currently trading in the 0.7910 price zone, and the near-term picture suggests the decline may continue heading into the weekend. The 4-hour chart shows that the pair is below its 20 SMA while technical indicators extend their declines, entering negative levels. A steeper decline is to be expected on a break below 0.7865, the immediate support level.

Support levels: 0.7865 0.7820  0.7770

Resistance levels: 0.7920 0.7965 0.8005  

View Live Chart for the AUD/USD

 

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Posted-In: FXStreetNews Forex Global Markets

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