AUD/USD Price Analysis: Retreats from 0.6750 as investors anticipate hawkish Fed guidance

AUD/USD has sensed selling pressure around 0.6750 as investors have shifted their focus toward the Fed policy.
As per the consensus, inflation gained at a pace of 1.0% vs. the prior pace of 1.4% on a quarterly basis.
AUD/USD has sensed selling pressure while attempting to climb above the horizontal resistance plotted around 0.6900

Sagar Dua FXStreet

The AUD/USD pair has met stiff resistance near 0.6750 after a less-confident pullback in the late European session. The recovery move in the Aussie asset has faded as investors have turned cautious ahead of the interest rate policy by the Federal Reserve (Fed), which will be announced on July 26.

S&P500 futures have posted significant gains in the London session, portraying ease in the negative market sentiment. The US Dollar Index (DXY) is gathering strength to recapture the intraday high of 101.41 as investors are anticipating that the Fed will hike interest rates on July 26 after skipping in June.

Meanwhile, the Australian Dollar is expected to deliver a power-pack action ahead of the inflation data for the second quarter. As per the consensus, inflation gained at a pace of 1.0% vs. the prior pace of 1.4% on a quarterly basis. Annual Consumer Price Index (CPI) contracted to 6.2% against 7.0% the prior release.

AUD/USD has sensed selling pressure while attempting to climb above the horizontal resistance plotted from June 16 high around 0.6900. The Aussie asset has formed a Double Top chart pattern, which indicates a bearish reversal. The 20-period Exponential Moving Average (EMA) at 0.6758 is acting as a barricade for the Aussie bulls.

The Relative Strength Index (RSI) (14) has slipped below 40.00, which indicates that the downside momentum has been activated.

Going forward, a downside move below the immediate support of 0.6700 would expose the asset toward July 11 low at 0.6650, followed by the round-level support at 0.6600.

On the flip side, a recovery move above July 20 high at 0.6847 would drive the asset toward June 16 high of around 0.6900. Breach of the latter would send the major toward February 16 high at 0.6936.

AUD/USD four-hour chart

AUD/USD

Overview
Today last price	0.6736
Today Daily Change	0.0005
Today Daily Change %	0.07
Today daily open	0.6731

Trends
Daily SMA20	0.6718
Daily SMA50	0.6691
Daily SMA100	0.6687
Daily SMA200	0.6718

Levels
Previous Daily High	0.6788
Previous Daily Low	0.6722
Previous Weekly High	0.6854
Previous Weekly Low	0.6722
Previous Monthly High	0.69
Previous Monthly Low	0.6484
Daily Fibonacci 38.2%	0.6747
Daily Fibonacci 61.8%	0.6763
Daily Pivot Point S1	0.6706
Daily Pivot Point S2	0.6682
Daily Pivot Point S3	0.6641
Daily Pivot Point R1	0.6772
Daily Pivot Point R2	0.6813
Daily Pivot Point R3	0.6838

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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