AUD/USD Price Analysis: Further recovery hinges of 0.6700 breakout and RBA Interest Rate Decision


  • AUD/USD grinds higher past short-term support line, prods key EMA resistance confluence.
  • RSI, MACD conditions suggest further upside of Aussie pair but concerns of 200-EMA, 100-EMA prods buyers.
  • Pre-RBA anxiety also restricts immediate Aussie pair moves amid indecision about no rate hike versus 0.25% rate increase.
  • AUD/USD bears need validation from 0.6810 whereas bulls have multiple hurdles to cross before targeting June’s peak of 0.6900.

AUD/USD aptly portrays the pre-event anxiety around the 0.6680-70 region as markets await the all-important Reserve Bank of Australia (RBA) Interest Rate Decision on early Tuesday. Adding strength to the market’s indecision could be the US holidays and recently mixed concerns about the Australian central bank’s rate hike after offering consecutive two hawkish surprises in the last.

Also read: Reserve Bank of Australia Preview: A close call, with AUD/USD vulnerable

While portraying the bullish performance of the quote, the AUD/USD pair keeps trading beyond an ascending support line stretched from the last Thursday, around 0.6650 by the press time. Also keeping the Aussie pair buyers hopeful are the bullish MACD signals and the above 50.0 levels of the RSI (14) line, not overbought.

It should be noted that the previous week’s upside break of a 12-day-old descending resistance line, now support around 0.6810, add strength to the upside bias about the pair.

Additionally challenging the AUD/USD bears are the lows marked in June around 0.6595 and 0.6580.

On the contrary, a convergence of 100 and 200 Exponential Moving Average (EMA), close to 0.6690-95, quickly followed by the 0.6700 round figure, prods the AUD/USD bulls before giving them control.

Even so, the previous weekly high of 0.6720 and multiple levels near 0.6755-60, as well as 0.6810, can challenge the Aussie pair’s further upside.

Overall, AUD/USD is likely to remain firmer further the road toward the north appears long and bumpy.

AUD/USD: Four-hour chart

Trend: Further upside expected

Additional important levels

Overview
Today last price 0.6675
Today Daily Change 0.0010
Today Daily Change % 0.15%
Today daily open 0.6665
 
Trends
Daily SMA20 0.6729
Daily SMA50 0.6674
Daily SMA100 0.67
Daily SMA200 0.6692
 
Levels
Previous Daily High 0.6672
Previous Daily Low 0.6603
Previous Weekly High 0.6721
Previous Weekly Low 0.6595
Previous Monthly High 0.69
Previous Monthly Low 0.6484
Daily Fibonacci 38.2% 0.6646
Daily Fibonacci 61.8% 0.6629
Daily Pivot Point S1 0.6622
Daily Pivot Point S2 0.6578
Daily Pivot Point S3 0.6553
Daily Pivot Point R1 0.669
Daily Pivot Point R2 0.6715
Daily Pivot Point R3 0.6758

 

 

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 remains pressured below 1.0800 on renewed USD strength

EUR/USD remains pressured below 1.0800 on renewed USD strength

EUR/USD stays under pressure and declines toward 1.0750 following Thursday's recovery. A renewed US Dollar uptick and a cautious mood weigh on the pair, as traders digest the Trump win and the Federal Reserve's monetary policy announcements.

EUR/USD News
GBP/USD holds lower ground near 1.2950 amid tepid risk sentiment

GBP/USD holds lower ground near 1.2950 amid tepid risk sentiment

GBP/USD trades in negative territory at around 1.2950 in the second half of the day on Friday. The emergence of dip-buying in the US Dollar and a tepid risk tone undermine the pair. The BoE’s cautious rate cut could check the pair's downside as traders comments from central bankers.

GBP/USD News
Gold fluctuates below $2,700 amid stronger USD, positive risk tone

Gold fluctuates below $2,700 amid stronger USD, positive risk tone

Gold trades below $2,700 in the early American session on Friday and is pressured by a combination of factors. Hopes that Trump's policies would spur economic growth and inflation, to a larger extent, overshadow the Fed's dovish outlook, which, in turn, helps revive the USD demand.

Gold News
Week ahead – US CPI to shift market focus back to data after Trump shock

Week ahead – US CPI to shift market focus back to data after Trump shock

After Trump comeback, normality to return to markets with US CPI. GDP data from UK and Japan to also be important. But volatility to likely persist as markets assess impact of Trump. 

Read more
October’s US CPI rates to be the next big test for the greenback

October’s US CPI rates to be the next big test for the greenback

With the US elections being over, Trump getting elected and the Fed having released its interest rate decision, we take a look at what next week has in store for the markets. On the monetary front a number of policymakers from various central banks are scheduled to speak at some point or the other.

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