AUD/USD is in a bullish limbo

The AUD/USD pair has spent a second consecutive week in a tight 100 pips’ range, although near its year high at 0.7411. The aussie is in limbo as momentum is nowhere to be found, Valeria Bednarik, Chief Analyst at FXStreet, reports. 

Key quotes

“A tough lockdown was imposed in South Australia, although it was lifted sooner than expected after contact tracers found out that one infected person deliberately lied about his exposure and contact with others. Despite a better pandemic situation, the AUD was unable to appreciate against its US rival. Instead, the commodity-linked currency followed the uneventful behavior of equities, which, in turn, reflected the apathetic market´s sentiment.”

“The weekly chart shows that a flat 200 SMA continues to provide dynamic support while the 20 SMA advances below it. Technical indicators remain within positive levels but lack directional strength. Bulls are in control but still unwilling to push it towards fresh highs.”

“The first support level is 0.7200, followed by the 0.7120 price zone. A break below this last would expose the critical 0.700o threshold. On the other hand,  0.7340 provides resistance, en route to the yearly high at 0.7411.”