AUD/USD technical analysis: Bounces off multi-month lows, tests 1-week old descending channel resistance


  • The AUD/USD pair traded with a bearish bias for the fifth consecutive session on Tuesday, albeit has managed to trim a part of its early slide to 5-1/2 month lows.
  • Dovish RBA monetary policy meeting minutes, showing that further monetary easing was more likely in the coming month further added to the recent bearish pressure.

However, oversold conditions on hourly charts prompted some near-term short-covering move and assisted the pair to bounce back closer to the top end of a descending trend-channel, held over the past one week or so.

Sustained move beyond the mentioned barrier might continue to fuel the recovery move and lift the pair back towards the previous multi-month lows support breakpoint, now turned resistance near the 0.6860-65 region.

Meanwhile, fears about a further escalation in the US-China trade tensions might continue to weigh on the China-proxy Australian Dollar and keep a lid on any strong follow-through recovery ahead of the FOMC on Wednesday

With oscillators on the daily chart still far from being in the oversold territory, rejection from the immediate resistance might turn the pair vulnerable to slide further towards challenging the 0.6800 handle - trend-channel support.

AUD/USD 1-hourly chart

AUD/USD

Overview
Today last price 0.6843
Today Daily Change -0.0009
Today Daily Change % -0.13
Today daily open 0.6852
 
Trends
Daily SMA20 0.693
Daily SMA50 0.6998
Daily SMA100 0.7058
Daily SMA200 0.7114
Levels
Previous Daily High 0.6885
Previous Daily Low 0.6848
Previous Weekly High 0.7009
Previous Weekly Low 0.6861
Previous Monthly High 0.7062
Previous Monthly Low 0.6862
Daily Fibonacci 38.2% 0.6862
Daily Fibonacci 61.8% 0.6871
Daily Pivot Point S1 0.6838
Daily Pivot Point S2 0.6825
Daily Pivot Point S3 0.6801
Daily Pivot Point R1 0.6875
Daily Pivot Point R2 0.6899
Daily Pivot Point R3 0.6912

 

 

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