- AUD/USD is set to end the week in the positive, up 0.90%.
- The odds that the US Federal Reserve will raise interest rates by 0.50% in September stand at 80%.
- AUD/USD Price Forecast: Range Limited as DMAs Trendless and RSI Shows Mixed Signals.
the australian dollar falls during the last day of the week but remains stubbornly above 0.7200 as sellers of the AUD/USD they are ready to break that number. At 0.7210, AUD/USD reflects the above as risk aversion rules the market, and the greenback received a boost after upbeat US data.
Risk aversion and dollar strength weigh on AUD/USD
European stocks ended the week with losses. Stocks fall between 0.67% and 2.13% in the US after market participants digested a stronger than expected employment report, although the opinions of financial analysts reinforced the pace of adjustment of the Federal Reserve . Money market futures odds of the US central bank raising 50 basis points in September stand at 85%, while the June and July meetings are fully priced in.
Friday’s AUD/USD price action shows the big failure to hold above the 200-day moving average (DMA) at 0.7256. Additionally, AUD/USD dipped below the 50-day moving average crossover below the 100-day moving average, further aggravating the downside move. Also, the Relative Strength Index (RSI), while in bullish territory, the oscillator slope shifted lower, aligning with price action.
AUD/USD Price Forecast: Technical Outlook
AUD/USD has a neutral bias as the daily moving averages (DMAs) remain directionless. However, traders should note that although the AUD/USD broke above the May 5 high of 0.7266, the buyers were unable to sustain it and the sellers dragged the pair from above the 200 DMA, below the aforementioned above, along with the 50 and 100 DMAs.
However, the bias remains neutral due to the horizontal sloping of the DMAs and the RSI showing mixed signals. To the upside, the first resistance for AUD/USD would be the confluence of the 50 and 100 DMAs around the 0.7226-28 area. Once broken, the next supply zone would be the 200 DMA at 0.7256, followed by the weekly high at 0.7283. On the other hand, the first support of the AUD/USD would be 0.7200. A break of the latter would expose the June 2 low at 0.7140, followed by the Feb 24 low at 0.7094.
Technical levels
Source: Fx Street
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