AUD/USD refreshes session tops, inches back closer to mid-0.7100s

AUD/USD stages a goodish bounce from sub-0.7100 levels amid stability in the equity markets.
The formation of a bearish double-top on Tuesday warrants some caution for bullish traders.
Wednesday’s key focus will be on the release of the FOMC monetary policy meeting minutes.

Haresh Menghani FXStreet

The AUD/USD pair edged higher through the early European session and was last seen trading near the top end of its daily trading range, around the 0.7135-40 region.

The pair managed to regain some positive traction on Wednesday and managed to recover a part of the previous day's sharp intraday fall of over 100 pips from the 0.7205-10 supply zone. The Australian dollar witnessed some selling after the Reserve Bank of Australia (RBA) opened the door for an interest rate cut as soon as in November.

The intraday bearish pressure aggravated further after the US President Donald Trump abruptly cancelled talks with Democrats on the economic stimulus package to boost the coronavirus-hit economy. Trump's surprise decision triggered a steep decline in the US equity markets and boosted the US dollar's relative safe-haven status.

The AUD/USD pair settled near the lower end of its daily trading range and dipped to sub-0.7100 level, or six-day lows on Wednesday before staging a goodish rebound. Signs of stability returning back to the equity markets turned out to be one of the key factors that prompted some short-covering around the perceived riskier aussie.

Given that the AUD/USD pair on Tuesday formed a classic bearish double-top pattern near the 0.7210 region, any subsequent move up runs the risk of fizzling out rather quickly. This makes it prudent to wait for some strong follow-through buying before traders again start positioning for any further near-term appreciating move.

Moving ahead, Wednesday's key focus will be on the release of the latest FOMC meeting minutes. This, along with the broader market risk sentiment will influence the USD price dynamics and produce some meaningful trading opportunities around the AUD/USD pair.

Technical levels to watch

AUD/USD

Overview
Today last price	0.7137
Today Daily Change	0.0037
Today Daily Change %	0.52
Today daily open	0.71

Trends
Daily SMA20	0.7193
Daily SMA50	0.7207
Daily SMA100	0.7053
Daily SMA200	0.678

Levels
Previous Daily High	0.7209
Previous Daily Low	0.71
Previous Weekly High	0.721
Previous Weekly Low	0.7028
Previous Monthly High	0.7414
Previous Monthly Low	0.7004
Daily Fibonacci 38.2%	0.7141
Daily Fibonacci 61.8%	0.7167
Daily Pivot Point S1	0.7064
Daily Pivot Point S2	0.7027
Daily Pivot Point S3	0.6954
Daily Pivot Point R1	0.7173
Daily Pivot Point R2	0.7246
Daily Pivot Point R3	0.7283

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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