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FxWirePro: AUD/USD falters at 200-DMA, on track to test weekly cloud

AUD/USD chart - Trading View Spot Analysis: AUD/USD was trading 0.15% higher on the day at 0.7503 at around 09:00 GMT Previous Week's High/ Low: 0.7601/ 0.7444 Previous Session's High/ Low: 0.7598/ 0.7480 Fundamental Ove…

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FxWirePro: AUD/USD falters at 200-DMA, on track to test weekly cloud
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AUD/USD chart - Trading View 

Spot Analysis:

AUD/USD was trading 0.15% higher on the day at 0.7503 at around 09:00 GMT

Previous Week's High/ Low: 0.7601/ 0.7444

Previous Session's High/ Low:  0.7598/ 0.7480

Fundamental Overview:

The Reserve Bank of Australia (RBA) delivered as expected, but retained a dovish forward guidance, with hikes only expected in 2024. 

Market participants prefer to wait on the sidelines ahead of Wednesday's release of the FOMC June meeting minutes. 

Rising coronavirus cases of the Delta variant raise chances that some countries might reinstate lockdown restrictions, souring sentiment.

Technical Analysis:

- Price action has been rejected at 200-DMA resistance

- Momentum indicators are bearish, volatility is high

- Analysis of GMMA indicator shows major and minor trend are bearish

- MACD is below zero and supports downside in the pair

Major Support and Resistance Levels:

Support - 0.7453 (55-week EMA), 0.7417 (23.6% Fib), 0.7303 (110-week EMA)

Resistance - 0.7527 (200H MA), 0.7570 (200-DMA), 0.7628 (21-week EMA)

Summary: AUD/USD consolidates below 200-DMA. Major trend remains bearish. Focus of FOMC minutes for impetus. The broader market risk sentiment might produce some short-term trading opportunities. Scope for test of weekly cloud support. 
 

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