AUD/USD Price Analysis: Corrective bounce seeks acceptance from 0.6655 hurdle and Australia inflation

AUD/USD pares the biggest daily loss in eight days with minor gains.
One-month-old horizontal support, oversold RSI (14) put a floor under Aussie prices.
Six-week-long previous support line guards recovery moves ahead of Australia CPI for Q1 and March.

Anil Panchal FXStreet

AUD/USD prints mild gains around 0.6630 as it consolidates the biggest daily loss in a week ahead of the Australia Consumer Price Index (CPI) amid early Wednesday. In doing so, the Aussie pair rebounds from a horizontal area comprising multiple levels marked since late March amid an oversold RSI (14) line.

The recovery moves, however, lack upside momentum amid bearish MACD signals. Also challenging the AUD/USD buyers is the quote’s sustained downside break of a 1.5-month-old previous support line, now immediate resistance near 0.6655. Furthermore, likely downbeat prints of Aussie inflation and the Reserve Bank of Australia’s (RBA) dovish bias keep the pair sellers hopeful.

Even so, the quote needs to provide a successful break of the aforementioned horizontal support surrounding 0.6620-25 to convince the AUD/USD bears.

Following that, the yearly low marked in March around 0.6565 will be in the spotlight.

Meanwhile, recovery moves need to cross the support-turned-resistance line of around 0.6655 to convince intraday buyers of the AUD/USD pair.

However, a downward-sloping resistance line from April 20 and the 200-SMA, respectively near 0.6680 and 0.6690, quickly followed by the 0.6700 round figure, could challenge the Aussie pair buyers afterward.

To sum up, AUD/USD remains on the bear’s radar even if the quote bounces off short-term key support.

AUD/USD: Four-hour chart

Trend: Limited upside expected

Additional important levels

Overview
Today last price	0.6636
Today Daily Change	0.0010
Today Daily Change %	0.15%
Today daily open	0.6626

Trends
Daily SMA20	0.6702
Daily SMA50	0.6714
Daily SMA100	0.6797
Daily SMA200	0.6741

Levels
Previous Daily High	0.6706
Previous Daily Low	0.6614
Previous Weekly High	0.6772
Previous Weekly Low	0.6678
Previous Monthly High	0.6784
Previous Monthly Low	0.6564
Daily Fibonacci 38.2%	0.6649
Daily Fibonacci 61.8%	0.6671
Daily Pivot Point S1	0.6592
Daily Pivot Point S2	0.6558
Daily Pivot Point S3	0.6501
Daily Pivot Point R1	0.6683
Daily Pivot Point R2	0.674
Daily Pivot Point R3	0.6774

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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