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.
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
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.