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.

EUR/USD stays well offered below 1.1800

The selling pressure on EUR/USD is picking up pace, with the pair slipping decisively below the key 1.1800 level and sliding to fresh two week lows as Wednesday’s session draws to a close. The move lower comes as the US Dollar finds renewed strength after the latest round of US data and the release of the FOMC Minutes. Next of note on the docket will be the US weekly Initial Jobless Claims.

GBP/USD reaches multi-day lows near 1.3500

GBP/USD reverses its initial upside momentum and is now adding to previous declines, approaching the 1.3500 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold battle to regain $5,000 continues

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and challenging two-day highs near the $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Bitcoin has found or is near a bottom, extended consolidation to follow: K33

Bitcoin (BTC) is nearing or has already established a bottom, which could be followed by a sustained period of slow price movement, according to K33.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.