AUDUSD trades in sideways motion, sitting on 0.7840 as traders eye the RBA meeting for any possible chance to lower its cash rate by 25bps to 2%. Forming a high probability bearish set-up on the daily chart, price action was subdued for the Aussie Dollars despite building approvals reported better than expected figures.Currently sitting on the 80 days MA line at 0.7840, the pair has been in a strong down-trend, pulling-back form the resistance at 0.8080 attained last week. In broader term, a break below 0.7800 would provide bearish confirmation of further downside, with a target at the level 0.7740.
Trading around the crucial support area on the H4 support, price is currently sitting at the 100.00% Fibonacci Retracement mark. In the releases to today's RBA interest rate decision, price action has produced about 50 pips of movement, with the pair struggling to find its direction. Stalled below the 20 & 55 MA line, the AUD looks to be protecting further losses ahead of the RBA rate statement release. Overall, technical pattern is hinting the larger down trend for the Australian Dollar, with the fact that the RBA event itself might be enough to finally force a break in the AUD pair.
Traders will be zeroed in on the Reserve Bank of Australia (RBA) when it announces its interest-rate decision later today. Given that the market is pricing in an 80% chance of easing, the eventual release of the rate statement should the pair free from its dull motion observed overnight. On the note that RBA does decides to cuts rates at 25bp, it is expected of AUDUSD to test and break 0.7800 support level. Alternatively, should RBA keeps rates unchanged, AUD is likely to squeeze to 0.8000 resistance mark.
Trend Direction |
S3 |
S2 |
S1 |
R1 |
R2 |
R3 |
|
||
| Sideways | 0.7670 | 0.7740 | 0.7800 | 0.7930 | 0.8000 | 0.8080 |
