AUD/USD Price Analysis: Aussie pair extends post-RBA losses towards 0.6630 support confluence


  • AUD/USD reverses Monday’s recovery from three-week low after RBA inaction.
  • RBA disappoints Aussie bulls by keeping rates unchanged for the second consecutive month.
  • Looming death cross, downbeat break of immediate support line favor AUD/USD sellers in aiming 0.6630 key support.
  • Aussie pair remains on the bear’s radar below 0.6800.

AUD/USD drops 0.90% intraday to 0.6655 heading into Tuesday’s European session as the Aussie pair reverses the previous day’s recovery moves after the Reserve Bank of Australia’s (RBA) second consecutive inaction. In doing so, the risk-barometer pair also justifies the downside break of an ascending trend line from Friday, as well as the looming bear cross on the MACD, not to forget the downbeat RSI (14) line.

Also read: AUD/USD slumps 40 pips below 0.6700 on RBA inaction, US data eyed

With this, the Aussie pair appears all set to challenge the convergence of a two-month-old rising support line and 61.8% Fibonacci retracement of the AUD/USD pair’s late May to mid-June upside, near 0.6630.

However, the quote’s further downside appears difficult as the RSI (14) is below 50.0, suggesting bottom-picking.

Hence, the AUD/USD bears will need confirmation of the impending death cross, a condition where the 50-SMA pierces the 200-SMA from above.

Even so, lows marked on June 29 and 05, respectively near 0.6595 and 0.6580, can act as the final defense of the Aussie pair bears.

On the flip side, the support-turned-resistance line, close to 0.6690, quickly followed by the 0.6700 round figure, prods the AUD/USD buyers.

Following that, a convergence of the 50-SMA and 200-SMA, around 0.6735 at the latest, will precede a downward-sloping resistance line from July 13, near 0.6795, to act as the final defense of the AUD/USD bears.

AUD/USD: Four-hour chart

Trend: Further downside expected

Additional important levels

Overview
Today last price 0.666
Today Daily Change -0.0057
Today Daily Change % -0.85%
Today daily open 0.6717
 
Trends
Daily SMA20 0.6741
Daily SMA50 0.67
Daily SMA100 0.6693
Daily SMA200 0.6731
 
Levels
Previous Daily High 0.674
Previous Daily Low 0.6648
Previous Weekly High 0.6821
Previous Weekly Low 0.6623
Previous Monthly High 0.6895
Previous Monthly Low 0.6599
Daily Fibonacci 38.2% 0.6705
Daily Fibonacci 61.8% 0.6683
Daily Pivot Point S1 0.6664
Daily Pivot Point S2 0.661
Daily Pivot Point S3 0.6572
Daily Pivot Point R1 0.6755
Daily Pivot Point R2 0.6793
Daily Pivot Point R3 0.6847

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD recovers above 1.0550 on renewed US Dollar weakness

EUR/USD recovers above 1.0550 on renewed US Dollar weakness

EUR/USD rebounds above 1.0550 in the European trading hours on Monday. A positive shift in risk sentiment curbs the safe-haven demand for the US Dollar finds fresh haven, offering some comfort to the pair. amid a data-light calendar. 

EUR/USD News
GBP/USD rebounds toward 1.2800 as risk appetite returns

GBP/USD rebounds toward 1.2800 as risk appetite returns

GBP/USD picks up fresh bids and jumps toward 1.2800 in the European session on Monday. Markets cheer improving risk sentiment as traders shrug off geopolitical risks and reposition ahead of the US inflation test, dragging the US Dollar lower across the board. 

GBP/USD News
Gold price trims a part of modest intraday gains; $2,650 hurdle caps the upside

Gold price trims a part of modest intraday gains; $2,650 hurdle caps the upside

Gold price ticks higher on Monday amid bets for another Fed rate cut in December. Geopolitical tensions and trade war fears further benefit the safe-haven commodity. Expectations for a less dovish Fed underpin the USD and cap gains for the XAU/USD.

Gold News
Pepe meme coin hits new all-time high, with market cap surpassing $11 billion

Pepe meme coin hits new all-time high, with market cap surpassing $11 billion

Pepe (PEPE) soars to a new all-time high (ATH) of $0.0000275 on Monday after an 18% rally over the past week. Rising open interest signals fresh market buying and the technical outlook indicates a potential climb toward $0.0000336.

Read more
A big week for central banks

A big week for central banks

This week’s CPI data will be the last piece of the puzzle before the Fed meets next week. The ECB, BoC, RBA and the SNB will announce their latest policy verdict throughout this week.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures