AUD/USD Price Analysis: Support-turned-resistance probes RBA-led gains near 0.6930
- AUD/USD retreats from previous support line, pares the first daily gains in four while bouncing off the key support confluence.
- RBA-inspired gains join 0.6860-65 support confluence to portray recovery moves.
- Bearish MACD signals, failure to cross support-turned-resistance tease Aussie pair bears.
- RBA’s hawkish move failed to impress Aussie bulls for long amid talks of easing inflation.
AUD/USD pares intraday gains around 0.6930 as bulls struggle near the short-term key hurdle heading into Tuesday’s European session. In doing so, the Aussie pair fades the bounce off a one-month low while snapping a three-day downtrend.
That said, the Reserve Bank of Australia’s (RBA) 0.25% rate hike, as expected, underpinned the AUD/USD pair’s rebound from the 0.6860-65 support confluence comprising the 50-DMA and 61.8% Fibonacci retracement of its June-October 2022 downside.
Also read: AUD/USD Outlook: Bulls look to seize back control on RBA’s hawkish outlook
It’s worth noting, however, that the mentioning of the fears of receding inflation fears and the inability to cross the support-turned-resistance line from early November 2022, close to 0.6930 by the press time, challenges the AUD/USD pair buyers.
In a case where the Aussie pair stays firmer past 0.6930, the odds of its run-up toward the 0.7000 psychological magnet can’t be ruled out. However, highs marked during August 2022 and the monthly top, close to 0.7135 and 0.7160 in that order, could challenge the AUD/USD bulls afterward.
Meanwhile, AUD/USD pullback remains elusive unless breaking the 0.6860 support confluence.
Even so, the 200-DMA support, around 0.6810 by the press time, could challenge the Aussie pair sellers. Also acting as the downside filter is the 0.6800 threshold, a break of which could quickly drag prices toward January’s low near 0.6685.
AUD/USD: Daily chart
Trend: Pullback 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.
