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Denis Sergienko • 2021-07-06

UDUSD again crosses seven-week-old hurdle on RBA moves

UDUSD again crosses seven-week-old hurdle on RBA moves

Despite pouring cold water on the face of monetary policy adjustment hopes, the Reserve Bank of Australia (RBA) manages to keep AUDUSD at the front of the G10 gainers. The Aussie central bank refrained from widely teased yields targets while also signaling a plan for further bond purchases during Tuesday’s monetary policy meeting. However, downbeat US dollar and hawkish comments from Governor Philip Lowe back another move beyond the falling trend line resistance, previous support, from mid-May after failing to stay beyond the same during late June’s upswing. Given the bullish MACD and RSI recovery, not to forget the 200-DMA breakout, buyers are likely to overcome the June 25 top surrounding 0.7615 during the latest run-up. Though, early June lows near 0.7645 will test the AUDUSD bulls afterward.

Meanwhile, failures to stay past 0.7570 confluence comprising 200-day SMA and the stated trend line, will recall the AUDUSD sellers targeting the 0.7500 round figure. However, bears will again be questioned by a falling trend line from early February, near 0.7475, during any further weakness past 0.7500. It should be observed that the pair’s bearish trend remains in play despite the latest recovery moves.

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