- AUD/USD is feeling the pull of gravity on weak data and amid losses in US stock futures.
- The 4-hour chart shows a bullish crossover of averages and a bearish indicator divergence.
The Aussie dollar is on the offer at press time and pushing the AUD/USD lower alongside losses in the US stock futures.
The currency pair is trading near 0.6411, having hit a session low of 0.6405 a few minutes ago. The upward momentum lost steam in the 0.6445 neighborhood during the overnight trade.
Meanwhile, the futures tied to the S&P 500 are reporting a 0.7% decline. Australia’s consumer confidence has suffered a historical collapse in April with Westpac’s consumer sentiment index falling to a record low of 75.6 from March’s print of 91.9.
The AUD/USD’s 4-hour chart is reporting mixed signals with the bullish crossover of the 50- and 200-candle averages painting a positive picture, while the bearish divergence of the relative strength index (RSI) signaling scope for a deeper pullback.
MA crossovers are lagging indicators. Hence, the odds of the pair extending the ongoing pullback, as suggested by the bearish divergence of the RSI, are high.
On the downside, support is seen at 0.6378 – that level is currently housing the trendline rising from April 5 and April 8 lows.
4-hour chart
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Trend: Bearish
Technical levels
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