AUD/USD technical analysis: Seems poised to extend dovish RBA minutes-led intraday downfall

The AUD/USD pair witnessed some selling on Tuesday and finally broke down of its one-week-old trading range in reaction to dovish sounding RBA monetar  |  17/09/2019 11:36
  • Dovish RBA meeting minutes exerted some fresh downward pressure on Tuesday.
  • The intraday slide to 1-1/2 week lows finds some support near 38.2% Fibo. level.

The AUD/USD pair witnessed some selling on Tuesday and finally broke down of its one-week-old trading range in reaction to dovish sounding RBA monetary policy meeting minutes. The intraday downfall dragged the pair back below 50-day SMA, albeit now seems to have found some support near 38.2% Fibo. level of the 0.7082-0.6677 downfall.
 
Meanwhile, given that the pair has repeatedly struggled to find acceptance above 50% Fibo. level of the and failed ahead of the 0.6900 handle, the ongoing slide to 1-1/2 week lows might now be seen as an indication of possible bullish exhaustion and could set the stage for a subsequent fall back towards challenging the 0.6800 round-figure mark.
 
Moreover, technical indicators on hourly charts have been drifting lower within the bearish territory and also losing positive momentum on the daily chart, adding credence to the negative outlook. However, the downside is likely to remain limited ahead of the highly anticipated FOMC policy decision, scheduled to be announced on Wednesday.
 
On the upside, the pair now needs to sustain above the 0.6875-80 region (50% Fibo. level) and subsequently move beyond the 0.6900 handle in order to increase prospects for an extension of the recent strong recovery move from multi-year lows, set on August 7.

AUD/USD daily chart

fxsoriginal

 

Share

Popular News

Show More Popular News

Market Insight's Views

Market Insight analyses will provide both fundamental and technical comprehensions on finance
and other asset classes for Market Insight viewers

Back

Login to Market Insight Account

Your Market Insight account gives you access to the tools that we offer our customers including our
Technical Studies & Sentiment for your accounts.

Forgot Password?

Don't you have a Market Insight account? With a few easy steps you can easily register to Market Insight

Create a Market Insight's Account

Your Market Insight account gives you access to the tools that we offer our customers including our Technical Studies & Sentiment for your accounts.

register_ty

Thank you!

Welcome to Market Insight family!

You have succesfully completed the registration.
We will send you an e-mail to give you some
instructions and our Terms and Conditions!
Our account representatives will be contacting you as
soon as possible. If you have any further questions
please do not hesitate to mail us via info@marketinsight.com