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.
