FXStreet (Guatemala) – Valeria bednarik, chief analyst at FXStreet explained that AUD/USD edged lower last week, closing it at 0.7025 after being as low as 0.6938, resuming the dominant bearish trend.
Key Quotes:
“The Aussie has been weighed by a steady decline in commodities’ prices and the increasing concerns over a Chinese economic slowdown. With a few macroeconomic readings scheduled in the country for this week, the pair will likely continue trading on sentiment, with strong bearish implications for the Aussie. Technically, the daily chart shows that the price has broken below its 20 SMA, although the Momentum indicator is posting a tepid bounce from its mid-line, and the RSI indicator aims higher around 40, limiting the downward potential at the time being.
In the 4 hours chart, the price is hovering around a bearish 20 SMA, whilst the Momentum indicator aims higher around its 100 level and the RSI indicator hovers around 46, in line with the daily outlook. To the upside, however, the price needs to recover above a strong static resistance around 0.7110, being then able to attract further demand.”
(Market News Provided by FXstreet)