Having breached a one-month-old bullish channel the last Friday, AUDUSD portrays a recovery that recently crossed the 200-SMA and a horizontal support area comprising multiple levels marked since early December 2022, respectively near 0.6900 and 0.6880-70. Also adding to the downside filter is a seven-week-long ascending trend line, close to 0.6840 at the latest, a break of which won’t hesitate to drag prices toward the previous monthly low surrounding 0.6685. It should be noted that the oversold RSI (14) hints at a corrective bounce even if the MACD supports the bearish momentum.
Alternatively, recovery moves may initially aim for the 0.7000 psychological magnet in case of the hawkish RBA announcements, other than the already known 0.25% rate hike. Following that, the aforementioned channel’s lower line, around 0.7080 by the press time, could probe the AUDUSD bulls. In a case where the Aussie pair buyers remain in control past 0.7080, a weekly resistance line near 0.7165 will act as the last defense of the ears bears.
To sum up, AUDUSD remains on the bear’s radar on the RBA day but the downside appears limited.