AUD/USD technical analysis: Seems poised to extend dovish RBA minutes-led intraday downfall

Dovish RBA meeting minutes exerted some fresh downward pressure on Tuesday.
The intraday slide to 1-1/2 week lows finds some support near 38.2% Fibo. level.

Haresh Menghani FXStreet

The AUD/USD pair witnessed some selling on Tuesday and finally broke down of its one-week-old trading range in reaction to dovish sounding RBA monetary policy meeting minutes. The intraday downfall dragged the pair back below 50-day SMA, albeit now seems to have found some support near 38.2% Fibo. level of the 0.7082-0.6677 downfall.

Meanwhile, given that the pair has repeatedly struggled to find acceptance above 50% Fibo. level of the and failed ahead of the 0.6900 handle, the ongoing slide to 1-1/2 week lows might now be seen as an indication of possible bullish exhaustion and could set the stage for a subsequent fall back towards challenging the 0.6800 round-figure mark.

Moreover, technical indicators on hourly charts have been drifting lower within the bearish territory and also losing positive momentum on the daily chart, adding credence to the negative outlook. However, the downside is likely to remain limited ahead of the highly anticipated FOMC policy decision, scheduled to be announced on Wednesday.

On the upside, the pair now needs to sustain above the 0.6875-80 region (50% Fibo. level) and subsequently move beyond the 0.6900 handle in order to increase prospects for an extension of the recent strong recovery move from multi-year lows, set on August 7.

AUD/USD daily chart

AUD/USD

Overview
Today last price	0.6833
Today Daily Change	-0.0031
Today Daily Change %	-0.45
Today daily open	0.6864

Trends
Daily SMA20	0.6796
Daily SMA50	0.6851
Daily SMA100	0.6902
Daily SMA200	0.7012

Levels
Previous Daily High	0.6885
Previous Daily Low	0.6853
Previous Weekly High	0.6895
Previous Weekly Low	0.6837
Previous Monthly High	0.6869
Previous Monthly Low	0.6676
Daily Fibonacci 38.2%	0.6873
Daily Fibonacci 61.8%	0.6865
Daily Pivot Point S1	0.685
Daily Pivot Point S2	0.6835
Daily Pivot Point S3	0.6818
Daily Pivot Point R1	0.6882
Daily Pivot Point R2	0.6899
Daily Pivot Point R3	0.6914

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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