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AUD/USD Forecast: Is Pressuring Daily Lows In The 0.6840 Price Zone With No Signs Of Bearish Exhaustion

Valeria Bednarik - Chief Analyst at FXStreet

AUD/USD Current Price: 0.6842

  • Australian Consumer Inflation Expectations resulted at 3.3% in June.
  • Wall Street’s slump weighed on the Aussie, the DJIA had its worst day in over three months.
  • AUD/USD is pressuring daily lows in the 0.6840 price zone with no signs of bearish exhaustion.

The Australian dollar fell to 0.6838 against the greenback hurt by tepid local data released at the beginning of the day and the dismal market’s mood. Australian Consumer Inflation Expectations resulted at 3.3% in June, down from 4.2% in May. Meanwhile, equities plunged following the US Federal Reserve dovish stance, with the DJIA having its worst day in over three months. Australia won’t release macroeconomic data this Friday, while China will publish May’s Foreign Direct Investment.

AUD/USD short-term technical outlook

The AUD/USD pair is trading near the mentioned daily low as the day comes to an end, and poised to extend its decline during the upcoming hours, particularly if equities remain under selling pressure. The 4-hour chart shows that the pair accelerated its slump once it broke below its 20 SMA, which has gyrated south. The 100 SMA maintains its bullish slope and currently stands at around 0.6770. Technical indicators, in the meantime, retain their sharp bearish slopes within negative levels, favoring a continued decline throughout the upcoming sessions.

Support levels: 0.6805 0.6770 0.6725

Resistance levels: 0.6890 0.6935 0.6980

View Live Chart for the AUD/USD

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