AUDUSD Forecast: Giving up on risk-aversion
AUD/USD Current Price: 0.6870
Global equities closed in the red amid resurgent cases of coronavirus in the US and Europe. The Australian macroeconomic calendar will remain empty for a second consecutive day. AUD/USD is heading lower in the short-term, bearish below 0.6770.
The AUD/USD pair eased throughout the last few sessions, ending the American one at around 0.6870. The decline was driven by the dismal mood that took over the financial world. Global equities closed in the red, as a large increase in coronavirus contagions in the US and warnings about a possible second wave in different European countries sent investors into the dollar’s safety. Australia didn’t publish macroeconomic data this Wednesday, and its macroeconomic calendar has nothing to offer during the upcoming Asian session.
AUD/USD short-term technical outlook
The AUD/USD pair is trading near its daily low and with the risk skewed to the downside in the short-term. The 4-hour chart shows that it has broken below its 20 and 100 SMA, both converging in the 0.6900/10 price zone, while technical indicators crossed their midlines into negative territory, maintaining their bearish slopes. A relevant support comes at 0.6809, the June 22 daily low. The decline has a limited impact on the dominant bullish trend, as long as the pair holds above the 0.6770 static support level.
Support levels: 0.6850 0.6810 0.6770
Resistance levels: 0.6925 0.6970 0.7010
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