Technical Analysis – AUDUSD recoups Friday’s loss ahead of RBA rate decision
July 31, 2023 2:27 pm
AUDUSD has flipped Friday’s loss and is currently aiming to return above its 50-day simple moving average (SMA) and the 0.6700 mark before the Reserve Bank of Australia’s rate announcement hits markets on Tuesday at 04:30 GMT.
Despite the steep bounce in the price, uncertainty remains according to the RSI and the stochastic oscillator. The former has stretched its latest downfall below its 50 neutral mark and the latter is still lacking direction slightly above its 20 oversold level.
Buyers could stay on the sidelines until the price pierces through its 20- and 200-day SMAs at 0.6735. In this case, the recovery could pick up steam towards the familiar 2022 resistance trendline seen at 0.6820. A successful penetration of this border could be the key for an advance towards the 0.6900 bar, where the pair peaked twice. If this wall collapses too, the rally might accelerate towards the resistance line from April seen around 0.6970.
Alternatively, if the pair pulls below its 50-day SMA and the 0.6700 mark, the tentative support trendline drawn from May’s low could soften downside forces around 0.6635 ahead of the 0.6565-0.6595 region. If the bears stay in charge there, the pair could experience a decisive downfall towards the 0.6455-0.6485 territory. This is where the price pivoted at the end of May. Slightly lower, the 2020 support trendline at 0.6420 could be crucial to watch as well.
In brief, AUDUSD has had an encouraging start to the week, though whether it will preserve its positive momentum in the coming sessions remains to be seen. A close above 0.6735 could improve sentiment, though only a significant close above 0.6900 would bolster buying confidence.
AUDUSD has flipped Friday’s loss and is currently aiming to return above its 50-day simple moving average (SMA) and the 0.6700 mark before the Reserve Bank of Australia’s rate announcement hits markets on Tuesday at 04:30 GMT.
Despite the steep bounce in the price, uncertainty remains according to the RSI and the stochastic oscillator. The former has stretched its latest downfall below its 50 neutral mark and the latter is still lacking direction slightly above its 20 oversold level.
Buyers could stay on the sidelines until the price pierces through its 20- and 200-day SMAs at 0.6735. In this case, the recovery could pick up steam towards the familiar 2022 resistance trendline seen at 0.6820. A successful penetration of this border could be the key for an advance towards the 0.6900 bar, where the pair peaked twice. If this wall collapses too, the rally might accelerate towards the resistance line from April seen around 0.6970.
Alternatively, if the pair pulls below its 50-day SMA and the 0.6700 mark, the tentative support trendline drawn from May’s low could soften downside forces around 0.6635 ahead of the 0.6565-0.6595 region. If the bears stay in charge there, the pair could experience a decisive downfall towards the 0.6455-0.6485 territory. This is where the price pivoted at the end of May. Slightly lower, the 2020 support trendline at 0.6420 could be crucial to watch as well.
In brief, AUDUSD has had an encouraging start to the week, though whether it will preserve its positive momentum in the coming sessions remains to be seen. A close above 0.6735 could improve sentiment, though only a significant close above 0.6900 would bolster buying confidence.
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