AUD/USD Price Analysis: Pair recovers toward 0.6400, remains under pressure

AUD/USD trades higher around 0.6390 but remains under pressure due to China-linked fears.
Momentum indicators suggest that the short-term trajectory is favoring a sideways trend.
Weekly low emerges as the key support aligned to 0.6350 psychological level.

Akhtar Faruqui FXStreet

AUD/USD recovers from the previous day’s losses, trading higher around 0.6390 during the early hours of the European session on Friday. The Australian Dollar (AUD) experienced downward pressure due to the Chinese economic fears along with US-China trade tensions. Additionally, investors are expecting a dovish stance by the Reserve Bank of Australia (RBA) regarding the interest rate-hike cycle.

Moreover, Chinese President Xi Jinping's decision not to attend the G20 leaders' summit in New Delhi this upcoming Saturday is anticipated to further intensify the existing strain in the already fragile and deteriorating relationship between China and the United States (US), particularly with the presence of US President Joe Biden at the event.

The Moving Average Convergence Divergence (MACD) line stays below the centerline but lies above the signal line. This configuration indicates that the recent momentum is relatively tepid and in a sideways direction.

The pair could find immediate support around the weekly low at 0.6357 level lined up with the 0.6350 psychological level. A firm break below that level could push the AUD/USD pair to navigate the region around the 0.6200 level.

On the upside, the 0.6400 psychological level is acting as a key resistance, following the 21-day Exponential Moving Average (EMA) at 0.6454 aligned to the 23.6% Fibonacci retracement at 0.6483 level.

In the near future, it is anticipated that the AUD/USD pair will continue to exhibit a bearish outlook, provided that the 14-day Relative Strength Index (RSI) remains below the 50 level.

AUD/USD: Daily Chart

AUD/USD: Additional important levels

Overview
Today last price	0.6394
Today Daily Change	0.0018
Today Daily Change %	0.28
Today daily open	0.6376

Trends
Daily SMA20	0.6437
Daily SMA50	0.6586
Daily SMA100	0.663
Daily SMA200	0.6715

Levels
Previous Daily High	0.6395
Previous Daily Low	0.6362
Previous Weekly High	0.6522
Previous Weekly Low	0.6401
Previous Monthly High	0.6724
Previous Monthly Low	0.6364
Daily Fibonacci 38.2%	0.6375
Daily Fibonacci 61.8%	0.6383
Daily Pivot Point S1	0.636
Daily Pivot Point S2	0.6345
Daily Pivot Point S3	0.6327
Daily Pivot Point R1	0.6393
Daily Pivot Point R2	0.641
Daily Pivot Point R3	0.6426

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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