AUD/USD Price Forecast: Shows resilience below 38.2% Fibo. near mid-0.7100s
The AUD/USD pair touches a one-and-a-half-week low, around the 0.7140 region during the Asian session on Monday, though it lacks follow-through. Spot prices currently trade just above mid-0.7100s, down nearly 0.25% for the day.
The AUD/USD exchange rate opened the week on a weak note, trading near mid-0.7100s on Monday. This price level is supported by rising Federal Reserve interest rate hike expectations and geopolitical tensions, particularly the US-Iran standoff. Despite these factors, hawkish Reserve Bank of Australia (RBA) expectations have helped prevent a more significant decline in the Australian Dollar.
Technical analysis indicates that the AUD/USD pair has shown resilience below the 23.6% Fibonacci retracement level at 0.7150, with the Relative Strength Index (RSI) near 30 suggesting oversold conditions that may slow the downside rather than trigger an immediate reversal. Should the price break below the 23.6% retracement, it could potentially lead to a deeper fall to the 38.2% Fibonacci level at 0.7095 and the 50% retracement at 0.7051, which would mark stronger demand zones if selling continues.
The 100-period Simple Moving Average (SMA) serves as immediate resistance at 0.7179, with a subsequent barrier at the recent cycle high near 0.7239. For the US Dollar (USD), it emerged as the strongest currency against major counterparts last week, bucking the trend of most major currencies weakening against the greenback.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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