AUD/USD Forecast: Bulls may soon take their chances

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6660

Australia will publish June Westpac Consumer Confidence early on Tuesday.
Without relevant macroeconomic data, AUD/USD traded on sentiment.
AUD/USD could extend its advance once above the 0.6670 resistance level.

The Australian Dollar (AUD) trades around the 0.6660 mark against its American rival, with the US Dollar losing some ground on Monday. The pair remained confined to a tight range, exacerbated by a cautious mood and the absence of relevant macroeconomic data. Major currencies found near-term clues in stocks, which anyway traded mixed. Most Asian indexes closed in the red, while their European counterparts posted modest gains. Finally, Wall Street started the day with positive momentum, although only the Dow Jones Industrial Average stood in the green ahead of the close.

Early on Tuesday, Australia will release the June Westpac Consumer Confidence index, previously at -0.3%. Other than that, the macroeconomic calendar has little to offer during Asian trading hours. Later in the day, the United States (US) will publish June CB Consumer Confidence, foreseen declining from the 102.0 posted in May, and the Richmond Fed Manufacturing Index for the same month, expected to have improved from 0 to 2.

AUD/USD short-term technical outlook

The AUD/USD pair daily chart shows that, despite closing in the green, it posted a lower low and lower high, usually a sign of increased selling interest. At the same time, AUD/USD seesaws around a flat 20 Simple Moving Average (SMA) while the longer moving averages remain directionless, some 100 pips below the current level. At the same time, technical indicators remain lifeless around their midlines, reflecting the absence of directional interest.

The near-term picture suggests the pair may extend its gains, particularly if it overcomes the intraday high at 0.6666. In the 4-hour chart, the pair is currently battling to overcome a bearish 20 SMA, while the 100 and 200 SMAs converge at around 0.6630, providing near-term support. At the same time, technical indicators aim north at around their midlines, still falling short of anticipating an advance but suggesting it. Whether AUD/USD will be able to advance will depend on the market sentiment, with stock markets leading the way.

Support levels: 0.6635 0.6600 0.6570

Resistance levels: 0.6670 0.6715 0.6770

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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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