AUD/USD Holds Within Familiar Levels, With the Bullish Potential Limited

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AUD/USD Current Price: 0.7270

• Australia will publish the September AIG Performance of Services Index on Thursday
• Wall Street welcomes news about a debt limit extension, reverses intraday losses.
• AUD/USD holds within familiar levels, with the bullish potential limited.

The AUD/USD pair shed part of its weekly gains and trades around the 0.7270 level heading into the Asian opening. The pair bottomed at 0.7225 on a dismal market mood extending into the European session, recovering partially during the US afternoon. The pair followed the lead of global stocks, falling alongside Asian and European ones, and finding some demand ahead of the daily close, as Wall Street bounced off intraday lows.

US indexes welcomed news indicating US Senate Republican Leader Mitch McConnell is planning to propose a short-term extension, until December, to the debt limit, recovering the ground lost earlier in the day. Wall Street is mixed, with major indexes trading near their opening levels.

Data-wise, Australia will publish the September AIG Performance of Services Index on Thursday, previously at 45.6.

AUD/USD short-term technical outlook

The AUD/USD pair maintains its bearish stance in the daily chart, as it shows that it is unable to retain gains above a bearish 20 SMA. Technical indicators hold within negative levels, with the RSI turning south at around 47. Additionally, the pair keeps meeting sellers around the 38.2% retracement of its latest slide at around 0.7290.   

The 4-hour chart shows that the pair has recovered up to a flat 20 SMA, while generally speaking, moving average are directionless, reflecting range-trading ever since the week started. The Momentum indicator turned lower, while the RSI rotated in the opposite direction, although both stand within neutral readings.

Support levels:  0.7225 0.7175 0.7130  

Resistance levels: 0.7290 0.7330 0.7370

Image Sourced 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.