- 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
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