AUD/USD analysis: Rally halted, risks increasing

Matías Salord FXStreet

AUD/USD Current price: 0.7557

The minutes of the Reserve Bank of Australia added not much new information. The minutes warned about weaker conditions in the labor market and appear to be more dovish than market expectations. The document weakened the Australian dollar during the Asian session and then it stabilized. The AUD/USD pair, after trading yesterday momentarily above 0.7600, started to decline and dropped further after RBA minutes. It found support during the European session above 0.7530 and it rose modestly on American hours, unable to take more benefit from the slide of the US dollar. The decline in Iron one futures also contributed to the weak Aussie.

From a technical perspective, indicators in the 4-hour chart show mix signals. While Momentum still points to the downside, RSI turned to the upside. For the next hours, consolidation between 0.7570 (20-SMA) and 0.7530 could persist. If it climbs and holds above 0.7570, another test of 0.7600 seems possible. While on the opposite direction a decline below 0.7530, would expose 0.7500. On a wider perspective, the bearish bias persists after the pair respected the 20-day moving average that stands at 0.7585. A daily close significantly on top would point to more gains.

https://editorial.azureedge.net/miscelaneous/AUDUSDH4FXK-636281382775865053.png

Support levels: 0.7530 0.7515 0.7470

Resistance level: 0.7590 0.7610 0.7640

View Live Chart for the AUD/USD

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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