AUD/USD Price Analysis: Aussie pair extends post-RBA losses towards 0.6630 support confluence

AUD/USD reverses Monday’s recovery from three-week low after RBA inaction.
RBA disappoints Aussie bulls by keeping rates unchanged for the second consecutive month.
Looming death cross, downbeat break of immediate support line favor AUD/USD sellers in aiming 0.6630 key support.
Aussie pair remains on the bear’s radar below 0.6800.

Anil Panchal FXStreet

AUD/USD drops 0.90% intraday to 0.6655 heading into Tuesday’s European session as the Aussie pair reverses the previous day’s recovery moves after the Reserve Bank of Australia’s (RBA) second consecutive inaction. In doing so, the risk-barometer pair also justifies the downside break of an ascending trend line from Friday, as well as the looming bear cross on the MACD, not to forget the downbeat RSI (14) line.

Also read: AUD/USD slumps 40 pips below 0.6700 on RBA inaction, US data eyed

With this, the Aussie pair appears all set to challenge the convergence of a two-month-old rising support line and 61.8% Fibonacci retracement of the AUD/USD pair’s late May to mid-June upside, near 0.6630.

However, the quote’s further downside appears difficult as the RSI (14) is below 50.0, suggesting bottom-picking.

Hence, the AUD/USD bears will need confirmation of the impending death cross, a condition where the 50-SMA pierces the 200-SMA from above.

Even so, lows marked on June 29 and 05, respectively near 0.6595 and 0.6580, can act as the final defense of the Aussie pair bears.

On the flip side, the support-turned-resistance line, close to 0.6690, quickly followed by the 0.6700 round figure, prods the AUD/USD buyers.

Following that, a convergence of the 50-SMA and 200-SMA, around 0.6735 at the latest, will precede a downward-sloping resistance line from July 13, near 0.6795, to act as the final defense of the AUD/USD bears.

AUD/USD: Four-hour chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	0.666
Today Daily Change	-0.0057
Today Daily Change %	-0.85%
Today daily open	0.6717

Trends
Daily SMA20	0.6741
Daily SMA50	0.67
Daily SMA100	0.6693
Daily SMA200	0.6731

Levels
Previous Daily High	0.674
Previous Daily Low	0.6648
Previous Weekly High	0.6821
Previous Weekly Low	0.6623
Previous Monthly High	0.6895
Previous Monthly Low	0.6599
Daily Fibonacci 38.2%	0.6705
Daily Fibonacci 61.8%	0.6683
Daily Pivot Point S1	0.6664
Daily Pivot Point S2	0.661
Daily Pivot Point S3	0.6572
Daily Pivot Point R1	0.6755
Daily Pivot Point R2	0.6793
Daily Pivot Point R3	0.6847

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD holds losses near 1.1850 as US, China holidays keep trade muted

EUR/USD opens the week on a softer note, trading near 1.1860 during the Asian session on Monday. Activity is likely to remain muted, with United States markets closed for the Presidents’ Day holiday, while Mainland China is also shut for the week-long Lunar New Year break.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold holds above $5,000 as bears seem hesitant amid Fed rate cut bets

Gold edges lower at the start of a new week, though it defends the $5,000 psychological mark through the Asian session. The underlying bullish sentiment is seen acting as a headwind for the bullion. However, bets for more rate cuts by the Fed, bolstered by Friday's softer US CPI, keep the US Dollar bulls on the defensive and continue to support the non-yielding yellow metal as the focus now shifts to FOMC Minutes on Wednesday.

Week ahead: Data blitz, Fed Minutes and RBNZ decision in the spotlight

The US jobs report for January, which was delayed slightly, didn’t do the dovish Fed bets any favours, as expectations of a soft print did not materialize, confounding the raft of weak job indicators seen in the prior week.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.