AUD/USD Price Analysis: Drops nearly 30 pips from session highs


  • AUD/USD pulls back from session highs, confirming a bearish divergence of RSI. 
  • The pair risks a deeper drop to the 50-hour SMA support. 

AUD/USD has failed to take out resistance at 0.70 ahead of the all-important Reserve Bank of Australia (RBA) interest rate decision. The pair is currently trading near 0.6970, having hit highs above 0.70 two hours ago. 

The pullback has established a bearish divergence of the relative strength index (RSI) on the hourly chart. A bearish divergence occurs when the indicator prints lower highs alongside higher highs on the price chart and is widely considered a sign of uptrend exhaustion. 

As such, one may expect a deeper drop in the AUD/USD, possibly to the ascending 50-hour simple moving average (SMA), currently at 0.6955. On the higher side, a clear break above 0.70 would restore the intraday bullish view.

The AUD/USD pair has rallied by over 1500 pips over the past 3.5-months. The RBA, therefore, may talk down the Aussie dollar. The rate decision is scheduled at 04:30 GMT. 

Hourly chart

Trend: Bearish

Technical levels

AUD/USD

Overview
Today last price 0.6971
Today Daily Change -0.0002
Today Daily Change % -0.03
Today daily open 0.6973
 
Trends
Daily SMA20 0.6902
Daily SMA50 0.672
Daily SMA100 0.6515
Daily SMA200 0.6672
 
Levels
Previous Daily High 0.6988
Previous Daily Low 0.6929
Previous Weekly High 0.6953
Previous Weekly Low 0.6832
Previous Monthly High 0.7065
Previous Monthly Low 0.6648
Daily Fibonacci 38.2% 0.6965
Daily Fibonacci 61.8% 0.6951
Daily Pivot Point S1 0.6939
Daily Pivot Point S2 0.6904
Daily Pivot Point S3 0.688
Daily Pivot Point R1 0.6998
Daily Pivot Point R2 0.7023
Daily Pivot Point R3 0.7057

 

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