AUD/USD Technical Analysis: 1H & 4H RSI below 30, minor bounce likely
|The AUD/USD pair could see a minor bounce from five-week lows as the relative strength indices (RSI) on the hourly and 4-hour chart is reporting oversold conditions.
Hourly chart
As seen above, the RSI dived out of the ascending trendline after the Aussie dollar slipped to five-week lows near 0.7060. The indicator is now reporting oversold conditions with below 30 reading.
That said, corrective bounce, if any, will likely find fresh offers above 0.7080, as the AU-US 10-year yield spread is falling in the AUD-negative manner. The Reserve Bank of Australia revised lower inflation and growth forecasts earlier today and reiterated that the probability of a rate cut is now evenly balanced with a hike. Further, the key MAs (50, 100, and 200) on the above chart are trending south, indicating a bearish setup.
Trend: minor bounce likely
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.