AUD/USD Price Analysis: Bounces off 10-DMA to welcome buyers near 0.6400 ahead of RBA

AUD/USD picks up bids to pare short-term losses.
Firmer oscillators back the recent bounce off nearby crucial DMAs, 13-day-old ascending trend line adds to the downside filter.
Buyers need validation from a downward-sloping resistance line from mid-August.

Anil Panchal FXStreet

AUD/USD bulls return to the table, after a three-day absence, as the Aussie pair prints the first daily gains around 0.6410 ahead of Tuesday’s monetary policy announcements from the Reserve Bank of Australia (RBA).

Also read: AUDUSD: The Aussie Dollar hovers around 0.6400 ahead of the RBA and the Fed decisions

In doing so, the AUD/USD prices rebound from a 10-DMA support, around 0.6380 at the latest. Also supporting the quote’s recovery are the bullish MACD signals and the steady RSI.

However, the upside room appears limited as a descending resistance line from mid-August, close to 0.6490, could challenge the bulls. Following that, the previous week’s peak of 0.6522 and 38.2% Fibonacci retracement level of August-October declines, near 0.6540, will be crucial to cross for the AUD/USD pair buyers to keep the reins.

Alternatively, a downside break of the 10-DMA support near 0.6380 isn’t a sure signal for the bear’s return as a convergence of the 21-DMA and a two-week-long support line, close to 0.6355, will be a tough nut to crack for the AUD/USD sellers before retaking the control.

Even if the quote breaks 0.6355 support, multiple supports around 0.6350, 0.6280 and 0.6230 could challenge the pair’s further downside.

AUD/USD: Daily chart

Trend: Limited recovery expected

Additional important levels

Overview
Today last price	0.6406
Today Daily Change	0.0008
Today Daily Change %	0.13%
Today daily open	0.6398

Trends
Daily SMA20	0.6355
Daily SMA50	0.6576
Daily SMA100	0.6747
Daily SMA200	0.6986

Levels
Previous Daily High	0.6428
Previous Daily Low	0.6368
Previous Weekly High	0.6522
Previous Weekly Low	0.6272
Previous Monthly High	0.6548
Previous Monthly Low	0.617
Daily Fibonacci 38.2%	0.6391
Daily Fibonacci 61.8%	0.6405
Daily Pivot Point S1	0.6368
Daily Pivot Point S2	0.6338
Daily Pivot Point S3	0.6308
Daily Pivot Point R1	0.6428
Daily Pivot Point R2	0.6458
Daily Pivot Point R3	0.6488

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.

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