AUD/USD Analysis: near a bearish breakout level

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7096

Australian dollar undermined by fears related to trade talks and global growth.
RBA Monetary Policy Statement could confirm the shift toward a neutral stance.

The AUD/USD pair extended its decline to 0.7089 during US trading hours, settling not far above this last, affected by the poor performance of Wall Street. US indexes were sharply lower Thursday following headlines indicating that US and Chinese leaders are "highly unlikely" to meet before the end of the trade truce, cooling down hopes for a soon resolution. Also, weighing on equities were renewed concerns about the global economic slowdown. During the upcoming Asian session, the RBA will release the latest Monetary Policy Statement. Investors will be looking for hints that confirm Lowe's change to a more neutral stance regarding rates.

The pair is bearish according to intraday technical readings, and close to a critical support area, the 0.7070 price zone as once below it, bears will take full control of the pair. In the 4 hours chart, technical indicators consolidate in oversold levels, while the price extended its decline below all of its moving averages, with the 20 SMA now crossing below the 100 SMA.

Support levels: 0.7070 0.7025 0.6980

Resistance levels: 0.7125 0.7160 0.7200

View Live Chart for the AUD/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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