FxWirePro: AUD/USD rangebound below 21-EMA, under pressure ahead of RBA policy meeting

• AUD/USD is trading in a narrow range, upside remains capped below 21-EMA at 0.7405.
   
• RBA Board Meeting is widely expected to leave the cash rate unchanged at 1.5%.
   
• Post-meeting communication will be carefully watched for any change in the Bank's outlook. 
   
• The RBA will also publish its latest forecasts for GDP, inflation and unemployment in its quarterly Statement.
   
• Technical studies point to a neutral bias for the day. We see stiff resistance at 21-EMA at 0.7405 and then 50-DMA at 0.7447. 
   
• Bullish divergence keeps scope for upside. Breakout at 50-DMA could see test of 23.6% Fib. 
   
• Rejection at 21-EMA could see test of trendline support at 0.7320. Violation there could see major weakness.

Support levels - 0.7320 (trendline), 0.7310 (July 2 low), 0.73
Resistance levels - 0.7405 (21-EMA), 0.7447 (50-DMA), 0.7505 (23.6% Fib)

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -31.7503 (Neutral), while Hourly USD Spot Index was at 111.1 (Bullish) at 0500 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex. 

Please refer to AUD/USD Charts on Trading View for more on AUD/USD Technical Analysis.