Technical Analysis: AUDUSD eases from key hurdle after RBA, US PMI eyed

Technical Analysis: AUDUSD eases from key hurdle after RBA, US PMI eyed

AUDUSD bulls step back from a convergence of a three-week-old resistance line and 100-SMA following RBA’s hints to July action. The Aussie pair drops to 0.7735 before the European session amid cautious sentiment ahead of the US ISM Manufacturing PMI for May, expected to remain unchanged near 60.7 level. In addition to the 0.7760-65 resistance confluence, a six-week-old horizontal resistance near 0.7815-20 becomes the key hurdle that holds the gate for AUDUSD bulls.

Meanwhile, the latest pullback eyes the 0.7700 round-figure before highlighting a two-month-long support region near 0.7670. Though, the pair’s weakness past 0.7670 will make it vulnerable to drop towards 0.7585 and April lows near 0.7540. Overall, AUDUSD consolidates April-May gains between 0.7670 and 0.7820 area.

Trade Forex with MTrading

Join us on FB and Twitter to stay updated on the latest market events.