AUD/USD technical analysis: Aussie's rise stalls at Tuesday's high of 0.6871
|- AUD/USD's post-CPI rise seems to have stalled at Tuesday's high of 0.6871.
- The hourly chart favors a drop to Tuesday's low of 0.6836.
- A break above 0.6871 is needed to revive the bullish setup.
The AUD/USD pair failed to take out Tuesday's high of 0.6871 and is currently trading at 0.6864.
The hourly chart is reporting a bearish divergence of the relative strength index. Further, the MACD histogram is reporting bearish conditions with a below-50 print.
The pair, therefore, risks falling back to Tuesday's low of 0.6836.
The outlook would turn bullish if the newfound resistance at 0.6871 is scaled. That possibility cannot be ruled out, as the Aussie CPI for the third quarter came in line with estimates at 00:30 GMT, dashing hopes of another 25 basis point rate cut by the Reserve Bank of Australia (RBA) in November. The central bank has already delivered three 25 basis point rate cuts in 2019.
Hourly chart
Trend: Bullish above 0.6871
Technical levels
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