- A downside bias is looming all-around ahead of the interest rate decision by the RBA.
- The asset may find a cushion around 0.6700 ahead as the downside looks imminent.
- A break into the 20.00-40.00 range by the RSI (14) is highly required to activate the declining mode.
The AUD/USD pair is experiencing modest selling pressure after facing barricades around 0.6800 in the late New York session. The major displayed a subdued performance on Monday after a gap down opening as investors shifted to the sidelines ahead of the interest rate decision by the Reserve Bank of Australia (RBA).
On a four-hour scale, the asset is declining towards the two-year low at 0.6682, recorded on July 14. A downside bias has been strengthened as the asset has faced barricades around the critical resistance placed from the August 30 low at 0.6846.
The 20-and 50-period Exponential Moving Averages (EMAs) at 0.6811 and 0.6846 respectively are declining, which adds to the downside filters.
However, the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which indicates a consolidation ahead. For downside momentum, the RSI (14) is required to drop into the bearish range of 20.00-40.00.
Should the asset drop below Thursday’s low at 0.6770, the greenback bulls will get activated and may drag the aussie bulls towards the round-level support at 0.6700, followed by the 6 March 2020 high at 0.6657.
Alternatively, the aussie bulls could regain strength and may send the asset towards Wednesday’s high at 0.6904 and August 23 high at 0.6964, if the asset oversteps Friday’s high at 0.6855 decisively.
AUD/USD four-hour chart
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
Editors’ Picks
EUR/USD rebounds from session lows, stays below 1.0600
EUR/USD recovers from the session low it set in the European session but remains below 1.0600 on Tuesday. Although the US Dollar struggles to gather strength following disappointing housing data, the risk-averse market atmosphere caps the pair's rebound.
GBP/USD remains under pressure below 1.2650 after BoE Governor Bailey testimony
GBP/USD trades in the red below 1.2650 on Tuesday, pressured by safe-haven flows. BoE Governor Bailey said a gradual approach to removing policy restraint will help them observe risks to the inflation outlook but this comment failed to boost Pound Sterling.
Gold remains propped up by geopolitics
Gold retreats slightly from the daily high it touched near $2,640 but holds comfortably above $2,600. Escalating geopolitical tensions on latest developments surrounding the Russia-Ukraine conflict and the pullback seen in US yields help XAU/USD hold its ground.
Bitcoin Price Forecast: Will BTC reach $100K this week?
Bitcoin (BTC) edges higher and trades at around $91,600 at the time of writing on Tuesday while consolidating between $87,000 and $93,000 after reaching a new all-time high (ATH) of $93,265 last week.
How could Trump’s Treasury Secretary selection influence Bitcoin?
Bitcoin remained upbeat above $91,000 on Tuesday, with Trump’s cabinet appointments in focus and after MicroStrategy purchases being more tokens.
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.