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AUD/USD struggling to stay near 0.7550 as bears continue to hamper buying efforts

2018-5-29 11:34:52Trading Strategies
AUD/USD struggling to stay near 0.7550 as bears continue to hamper buying efforts

The AUD/USD is trading just beneath 0.7560 heading through the overnight session after a flat Monday that saw little movement from last week's close.


The Aussie climbed for the early stages of Monday, peaking at 0.7580, but flows reversed direction through Europe and the pair is back into last Friday's closing figures near the 0.7550 level as confidence continues to wane in the Oceanic markets.


A limited economic schedule this week, and nothing on the horizon until Wednesday for the AUD/USD, leaves the pair fully exposed to broader market sentiment, and risk flows will decide the pair's fate for Tuesday.


AUD/USD levels to watch


FXStreet's Valeria Bednarik highlighted the pair's technical barriers looking forward: "the 4 hours chart shows that the pair was unable to surpass a modestly bearish 200 SMA, also limited by a daily descendant trend line coming from 0.7604. In the same chart, technical indicators are slowly grinding lower right below their mid-lines, but the downward momentum is limited, not enough to confirm additional slides ahead. The key support is 0.7505, the 23.6% retracement of the latest weekly decline, while to the upside, the mentioned trend line and the 200 SMA converge at around 0.7580, providing an immediate ahead of a more relevant one at 0.7620, the 50% retracement of the mentioned decline."


Support levels: 0.7505 0.7470 0.7430


Resistance levels: 0.7580 0.7620 0.7650


View Live Chart for the AUD/USD