FxWirePro: AUD/USD hovers around 0.6900 amid sluggish markets, RBA’s Lowe eyed

Chart - Courtesy Trading View 

Spot Analysis:

AUD/USD was trading 0.25% higher on the day at 0.6910 at around 07:10 GMT.

Previous Week's High/ Low: 0.7069/ 0.6850

Previous Session's High/ Low: 0.6927/ 0.6869

Fundamental Overview:

Aussie pair is showing a corrective pullback ahead of the scheduled speech from Reserve Bank of Australia (RBA) Governor Philip Lowe.

After a hawkish RBA, any positive comments from Governor Lowe supporting higher rates will defend Aussie bulls.

Improving risk-on mood and softer USD also supporting the Aussie pair’s rebound.

Technical Analysis:

- GMMA indicator shows major and minor trend in the pair are strongly bearish

- Price action is below cloud and major moving averages which are trending lower

- MACD and ADX support weakness in the pair, momentum is also with the bears

- 'Death Cross' (bearish 50-DMA crossover on 200-DMA) adds to the downside bias

Major Support and Resistance Levels:

Support - 0.6855 (Trendline), Resistance - 0.6928 (5-DMA)

Summary: AUD/USD recovery lacks traction. Scope for downside resumption, trendline support at 0.6855 in sight.