AUD/USD Remains Pegged Below 0.6800 as Calm Returns to Market

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The AUD/USD currency pair continues to trade in consolidative pattern formation below the key level 0.6800 on Friday as calm continues to return to the market. The currency pair had plunged over the last two weeks but this week has witnessed a considerable period of sideways trading.

The AUD/USD currency pair continues to face strong resistance around the 0.6800 level, which stretches back to the start of the month. This could continue through next week unless a major economic development turns the tide.

AUD/USD Fundamentals Overview

From a fundamental perspective, the AUD/USD currency pair is trading at the back of some key economic data from both the US and Australia. On Tuesday, the National Australia Bank’s Business Condition and Confidence beat expectations with 2 and 4 points for July versus an expectation of 1 and 3 points respectively. 

On Wednesday, Australia’s wage price index beat expectations of 0.5% growth with 0.6% growth on a (QoQ) basis but was inline on a (YoY) basis at 2.3%. And on Thursday, the Employment change beat expectations with 41.1k jobs versus an expectation of 14k jobs.

On the other hand, the US has also reported a fair share of economic data during the week. The Consumer Price Index beat expectations on all fronts, as did Retail Sales. But the initial and continuing jobless claims missed thereby resulting into some sort of a stalemate in the AUD/USD currency pair.

AUD/USD Technical Analysis (the 60-min Chart)

Technically, the AUD/USD currency pair appears to be trading in a consolidative pattern formation, which indicates that there could be a breakout at some point next week.

The currency pair is pegged above both the 100-hour and the 200-hour moving average lines, which suggests that the bulls enjoy some level of control going into next week.

They will target short-term profits at around 0.6800 while the bears will look to pounce by targeting profits at around the 0.6780 level.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair appears to be experiencing bearish pressure. Both the 100-day and 200-day moving average lines are positioned above the current level of the pair. 

However, the trendline support appears to be holding firm, which has triggered the current consolidative pattern formation. This creates intermediate trading opportunities for the bulls around 0.6820 while the bears will target profits at around 0.6750.

In summary, the AUD/USD currency pair appears to be experiencing long-term bearish bias but the bulls will be looking to pounce on all rebounds as they come.

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