AUD/USD oscillates above 0.7100

FXStreet (Córdoba) - AUD/USD has entered a consolidative phase on Wednesday, having steadied following sharp moves at the beginning of the week when the Aussie posted fresh 6-year low at 0.7036 on the back of a risk-off wave.

AUD/USD managed to recover from multi-year lows but the upside was capped by the 0.7250 zone on Tuesday confining the pair to a narrow range. At time of writing, AUD/USD is trading at 0.7125, little changed since opening.

AUD/USD technical perspective


“The pair is short term neutral, with the price struggling around a bearish 20 SMA and the technical indicators lacking directional strength around their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, however, the bearish bias prevails, with the price well below a strongly bearish 20 SMA and the technical indicators turning back south after a limited upward correction in positive territory”.

Bednarik locates immediate support levels at 0.7095, 0.7050 and 0.7010, while she sees resistances at 0.7150, 0.7200 and 0.7240.

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