AUD/USD Trades Around A Critical Fibonacci Resistance Level, Bullish Potential Limited

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AUD/USD Current Price: 0.7291

• The aussie found support in the better performance of Chinese equities.
• Global indexes traded mixed, but most of them closed in the green.
• AUD/USD trades around a critical Fibonacci resistance level, bullish potential limited.

The AUD/USD pair ended Monday trading near an intraday high of 0.7292, recovering most of the ground lost on Friday. Commodity-linked currencies benefited from the broad dollar’s weakness and the better performance of Chinese equities on easing Evergrande-related concerns. Global indexes, however, traded mixed as investors are weighing the better performance of the US economy alongside soon to come tapering in the country.

Australia did not publish macroeconomic data on Monday, and its calendar will remain empty until Thursday.  

AUD/USD short-term technical outlook

The AUD/USD pair is trading between Fibonacci levels, having met buyers around the 61.8% retracement of its August/September rally but unable to surpass the 50% retracement at 0.7290. The daily chart shows that the pair has been unable to clearly break above the latter since mid-September, while a flat 20 SMA converges with the next Fibonacci resistance. Technical indicators advanced modestly within negative levels, lacking sufficient strength to suggest another leg north.

In the near term, and according to the 4-hour chart, the pair is neutral, as it is holding above a mildly bullish 20 SMA but still below the longer ones. The Momentum heads modestly lower around its 100 level while the RSI consolidates at around 55. The pair may meet sellers around 0.7335 should bullish pressure continues.

Support levels: 0.7250 0.7210  0.7175

Resistance levels: 0.7335 0.7370 0.7410

Image by Squirrel_photos from Pixabay

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.