AUD/USD Technical Analysis: Recovery losing momentum, RBA's FSA has little impact on the AUD

  • The corrective rally in the AUD/USD pair has likely run out of steam, as indicated by the bearish divergence of the MACD.
  • A downside break of the rising trendline seen in the hourly chart could yield a drop below 0.71.
  • The Reserve Bank of Australia's Financial Stability Review released earlier today expressed concerns about the high level of household debt and offered little surprises to the market, leaving the AUD pairs at the mercy of the broader market sentiment.
  • On the higher side, a break above 0.7130 would signal a revival of the corrective rally from the Oct. 8 low of 0.7041.

Hourly Chart

Spot Rate: 0.7120

Daily High: 0.7130

Daily Low: 0.7117

Trend: Neutral

Resistance

R1: 0.7142 (Sept. 17 low)

R2: 0.7181 (50% Fib R of 0.7315/0.7041)

R3: 0.72 (psychological level)

Support

S1: 0.7085 (Sept. 11 low)

S2: 0.7041 (recent low)

S3: 0.70 (psychological support)

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