AUD/USD Technical Analysis: Oversold bounce underway

Omkar Godbole FXStreet Contributor

The AUD/USD pair is currently trading at 0.71, having clocked a low of 0.7060 last week.

The 40-pip oversold bounce could be extended further toward the downward sloping 5-day moving average (MA) of 07125, as the RSI on the 4H chart is reporting a bullish divergence and an upside break of the falling trendline. Further, the RSI on the hourly chart has moved into bullish territory above 50.00.

The bounce, however, could be short-lived, courtesy of dovish RBA expectations. Also, Chinese yuan has erased early gains - the USD/CNH pair is currently trading largely unchanged on the day at 6.7815, having clocked a low of 6.7646 earlier today.

More importantly, a close above 6.7945 (the high of Friday's doji) could yield big rally in USD/CNH. A slide in yuan will likely accentuate bearish pressures around the Australian currency.

4-hour chart

Trend: oversold bounce

AUD/USD

Overview:
    Today Last Price: 0.7101
    Today Daily change: 16 pips
    Today Daily change %: 0.23%
    Today Daily Open: 0.7085
Trends:
    Daily SMA20: 0.7174
    Daily SMA50: 0.7156
    Daily SMA100: 0.7169
    Daily SMA200: 0.7283
Levels:
    Previous Daily High: 0.7107
    Previous Daily Low: 0.706
    Previous Weekly High: 0.7265
    Previous Weekly Low: 0.706
    Previous Monthly High: 0.7296
    Previous Monthly Low: 0.6684
    Daily Fibonacci 38.2%: 0.7078
    Daily Fibonacci 61.8%: 0.7089
    Daily Pivot Point S1: 0.7061
    Daily Pivot Point S2: 0.7037
    Daily Pivot Point S3: 0.7014
    Daily Pivot Point R1: 0.7108
    Daily Pivot Point R2: 0.7131
    Daily Pivot Point R3: 0.7155

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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