AUD/USD Technical Analysis: Tests falling channel support, RBA's Lowe says low rates would lead to lower Aussie

Omkar Godbole FXStreet Contributor

AUD/USD is currently chipping away at the lower edge of the 4-hour chart falling channel, currently at 0.7166.

Earlier today, RBA's Lowe shifted the forward guidance to neutral by putting rate cuts back on the table. In response, the Aussie has dropped sharply across the board.

The AUD/USD pair has shed more than 70 pips in the last 60 minutes and could slide further toward 0.7138 (support of Jan. 28 low) if the channel support of 0.7166 fails to hold ground.

1-hour chart

As seen above, the RSI has hit the oversold territory below 30.00. Hence, a minor bounce could be in the offing, before a potential sell-off toward 0.7138.

It is worth noting that the European FX desks are yet to respond to RBA's change of attitude on interest rates. Put simply, another wave of selling could hit the AUD pairs in European hours.

Trend: bearish

AUD/USD

Overview:
    Today Last Price: 0.7173
    Today Daily change: -63 pips
    Today Daily change %: -0.87%
    Today Daily Open: 0.7236
Trends:
    Daily SMA20: 0.7187
    Daily SMA50: 0.7169
    Daily SMA100: 0.7174
    Daily SMA200: 0.7289
Levels:
    Previous Daily High: 0.7265
    Previous Daily Low: 0.7194
    Previous Weekly High: 0.7296
    Previous Weekly Low: 0.7138
    Previous Monthly High: 0.7296
    Previous Monthly Low: 0.6684
    Daily Fibonacci 38.2%: 0.7238
    Daily Fibonacci 61.8%: 0.7221
    Daily Pivot Point S1: 0.7198
    Daily Pivot Point S2: 0.716
    Daily Pivot Point S3: 0.7126
    Daily Pivot Point R1: 0.7269
    Daily Pivot Point R2: 0.7303
    Daily Pivot Point R3: 0.7341

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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