AUD/USD trades in narrow range as consolidation continues

FXstreet.com (Barcelona) - The AUD/USD finished the Friday session down 16 pips at 1.0277. Price action remained volatile throughout the day, with the pair trading as high as 1.0336 and as low as 1.0261. The pair is currently trading up 7 pips at 1.0285, with the majority of markets remaining fairly quiet with both China and Japan closed.

According to Val Bednarik of FXstreet.com, “Aussie still looks bearish against its American rival, with the AUD/USD hourly chart showing price retracing from a bearish 20 SMA and indicators holding in negative territory. While the pair has managed to bounce from past week low around 1.0220, selling interest surged in the strong 1.0335 static resistance level, and as long as below it, bears will remain in control.”

She went on to add, “In the 4 hours chart technical readings turned neutral, with price hovering around a flat 20 SMA and indicators around their midlines: steady losses below 1.0260 is what it takes to see the trend gaining momentum in the short term.”

The FXStreet.com Trend Index is reading strongly bearish on the 1 hour time frame, while the OB/OS Index is Neutral. The RSI (14) also remains in neutral set up, sitting just above the critical support level at 40. If the bears can take advantage and push the RSI through this level, it could lead to accelerated selling in the coming week. First support sits at 1.0261 (low from April 26th), followed by 1.0220 (low price from April 23rd). Initial resistance is at 1.0290 (the 45 dma on 1 hour chart), followed by 1.0336 (high price from April 26th)