- Dovish RBA meeting minutes exerted some fresh downward pressure on Tuesday.
- The intraday slide to 1-1/2 week lows finds some support near 38.2% Fibo. level.
The AUD/USD pair witnessed some selling on Tuesday and finally broke down of its one-week-old trading range in reaction to dovish sounding RBA monetary policy meeting minutes. The intraday downfall dragged the pair back below 50-day SMA, albeit now seems to have found some support near 38.2% Fibo. level of the 0.7082-0.6677 downfall.
Meanwhile, given that the pair has repeatedly struggled to find acceptance above 50% Fibo. level of the and failed ahead of the 0.6900 handle, the ongoing slide to 1-1/2 week lows might now be seen as an indication of possible bullish exhaustion and could set the stage for a subsequent fall back towards challenging the 0.6800 round-figure mark.
Moreover, technical indicators on hourly charts have been drifting lower within the bearish territory and also losing positive momentum on the daily chart, adding credence to the negative outlook. However, the downside is likely to remain limited ahead of the highly anticipated FOMC policy decision, scheduled to be announced on Wednesday.
On the upside, the pair now needs to sustain above the 0.6875-80 region (50% Fibo. level) and subsequently move beyond the 0.6900 handle in order to increase prospects for an extension of the recent strong recovery move from multi-year lows, set on August 7.
AUD/USD daily chart