AUD/USD Price Analysis: Further recovery hinges of 0.6700 breakout and RBA Interest Rate Decision
- AUD/USD grinds higher past short-term support line, prods key EMA resistance confluence.
- RSI, MACD conditions suggest further upside of Aussie pair but concerns of 200-EMA, 100-EMA prods buyers.
- Pre-RBA anxiety also restricts immediate Aussie pair moves amid indecision about no rate hike versus 0.25% rate increase.
- AUD/USD bears need validation from 0.6810 whereas bulls have multiple hurdles to cross before targeting June’s peak of 0.6900.
AUD/USD aptly portrays the pre-event anxiety around the 0.6680-70 region as markets await the all-important Reserve Bank of Australia (RBA) Interest Rate Decision on early Tuesday. Adding strength to the market’s indecision could be the US holidays and recently mixed concerns about the Australian central bank’s rate hike after offering consecutive two hawkish surprises in the last.
Also read: Reserve Bank of Australia Preview: A close call, with AUD/USD vulnerable
While portraying the bullish performance of the quote, the AUD/USD pair keeps trading beyond an ascending support line stretched from the last Thursday, around 0.6650 by the press time. Also keeping the Aussie pair buyers hopeful are the bullish MACD signals and the above 50.0 levels of the RSI (14) line, not overbought.
It should be noted that the previous week’s upside break of a 12-day-old descending resistance line, now support around 0.6810, add strength to the upside bias about the pair.
Additionally challenging the AUD/USD bears are the lows marked in June around 0.6595 and 0.6580.
On the contrary, a convergence of 100 and 200 Exponential Moving Average (EMA), close to 0.6690-95, quickly followed by the 0.6700 round figure, prods the AUD/USD bulls before giving them control.
Even so, the previous weekly high of 0.6720 and multiple levels near 0.6755-60, as well as 0.6810, can challenge the Aussie pair’s further upside.
Overall, AUD/USD is likely to remain firmer further the road toward the north appears long and bumpy.
AUD/USD: Four-hour chart
Trend: Further upside expected
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.
