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AUD/USD regains its balance, but still trapped below 0.7100

10/24/2018, 11:04:19 AMTrading Strategies
AUD/USD regains its balance, but still trapped below 0.7100

The AUD/USD remains trapped beneath the 0.7100 technical barrier heading into Wednesday's Asia market session, testing into 0.7080 after cycling within a tight range in Tuesday's trading.

Market sentiment remains the primary driver of the Aussie-Dollar, with the Aussie economy calendar devoid of any data for Wednesday. Risk flows into and out of the Greenback have been the main deciding factor in the AUD/USD's value as of late, and that trend is set to continue.

The latter half of this week sees meaningful data for the USD coming up, and although the AUD/USD can finally expect some momentum this week, but the big moves will be happening in the upcoming US sessions.

AUD/USD levels to watch

As noted by FXStreet's Valeria Bednarik, "the pair is trading marginally up daily basis, reacting with more conviction to equities' advances than to slumps, somehow suggesting that speculative interest is more willing to send the pair higher than lower. Nevertheless, it is still below the 23.6% retracement of its October decline at around 0.7090, the immediate resistance, and in the 4 hours chart, also below firmly bearish moving averages. In the mentioned chart technical indicators have lost their bearish strength, bouncing modestly but still within negative ground, falling short of confirming a bullish extension ahead. The upside will look more constructive on an advance beyond the weekly highs in the 0.7120 price zone."

Support levels: 0.7040 0.7000 0.6960

Resistance levels: 0.7090 0.7120 0.7155