FxWirePro: AUD/USD fails to hold break above 55-EMA, trades range bound ahead of RBA policy meet

AUD/USD chart on Trading View used for analysis

• AUD/USD is trading in a narrow range ahead of RBA policy meeting.
   
• Markets are pricing 0.0% chance of a rate hike from the RBA. However, the post-meeting presser will be in focus for any clues for the policy outlook.
   
• Major trend in the pair remains bearish and recovery attempts were rejected at 55-EMA.
   
• The pair has retraced brief break above 55-EMA with an 'Inverted Hammer' formation which reinforces further weakness.
   
• Upside remains capped at 0.7232 (converged 5-DMA and 21-EMA). Break above could see minor upside.
   
• On the flip side, break below 0.72 handle will see resumption of weakness. Scope then for test of 0.7085 (Sept 11 low).

Support levels - 0.72, 0.7144 (Sept 5, 18 low), 0.71, 0.7085 (Sept 11 low)

Resistance levels - 0.7232 (converged 5-DMA and 21-EMA), 0.7289 (55-EMA), 0.7315 (Sept 26 high)

Recommendation: Watch out for break below 0.72 handle for further weakness.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 56.4005 (Neutral), while Hourly USD Spot Index was at 61.6631 (Neutral) at 1015 GMT.

For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.