- AUD/USD drops after finding resistance at 0.7400, still hold to daily gains.
- Overall, price remains in a range near multi-month lows.
The AUD/USD pair rose sharply earlier today following the RBA meeting and a bearish correction of the US dollar across the board. It failed to break above 0.7400 and pulled back.
During the US session, the pair dropped to 0.7370/75. It was hovering around 0.7380, up 50 pips for the day. The retreat from the top took place after being unable to break the 0.7400 barrier and amid a stabilization of the greenback.
Earlier today, the Aussie gained moment following the Reserve Bank of Australia statement. As expected, the central bank kept rates unchanged while the statement was considered as “not so dovish”.
Lower US yields and higher commodity prices were offering support to the AUD/USD. Wall Street will close earlier today ahead of the Independent Day holiday on Wednesday.
Technical levels to watch
AUD/USD avoided yesterday a daily close under 0.7330 that would point to more weakens and to a test of 0.7300. The upside continues to be capped by the 0.7400 area. So in the short-term, it remains in the 0.7400/0.7330 range.
Above 0.7400, the next strong resistance is seen at 0.7440/45 and then at 0.7500. On the flip side, below 0.7330 support might lie at 0.7300 and 0.7285.
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