AUD/USD (current price: 0.7186)
The Australian Dollar continues to be under pressure against the U.S. Dollar after breaking below the 200-day MA last week. The lack of a meaningful bounce might mean that the currency will fall even lower before a sustained correction. All eyes are on the 0.725 support/resistance level that coincides with the 200-day MA currently. Investors are still focused on the diverging direction of the two central banks’, the RBA’s and the FED’s, monetary policies. The current decline could get a further boost if the Federal Reserve decides to raise its benchmark interest rate in June.
Our assessment: AUD/USD has been consolidating below the 200-day MA for three sessions now, with the 0.715 providing support and the 0.736 resistance offering a target for a possible, but unlikely correction.
