FxWirePro: AUD/USD trades rangebound after RBA matches expectations with 0.15% rate cut and A$ 100 billion QE

AUD/USD chart - Trading View 

AUD/USD was trading largely rangebound on the day with a session high at 0.7063 and low at 0.7035.

The Reserve Bank of Australia (RBA) matches wide market expectations of announcing a 0.15 rate cut to the benchmark Interest Rate.

The central bank also added Australian dollar worth 100 billion in the Quantitative Easing (QE) over the next 6 months.

AUD/USD little changed after RBA meeting as the markets had already priced in a dovish outcome.

Cautious optimism prevailing in the markets ahead of the US 2020 presidential race. Traders will also focus on Friday’s monetary policy statement for clear direction.

Technical bias for the pair is bearish. Scope for dip till 200-DMA at 0.6801. Bearish invalidation only on retrace above daily cloud. 

Major Support Levels: 

S1: 0.6963 (23.6% Fib)

S2: 0.6930 (55W EMA)

S3: 0.6801 (200-DMA)

Major Resistance Levels: 

R1: 0.7097 (21-EMA)

R2: 0.7121 (55 EMA)

R3: 0.7239 (200W MA)

Summary: U.S. Presidential outcome will have a major impact on direction. Technical bias is bearish. Watch out for break below 0.6991 (110W EMA) for weakness. Bearish invalidation above daily cloud.