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Technical Analysis: AUDUSD bears can ignore RBA-led pullback unless breaking 0.6825/30

AUDUSD takes a U-turn from the multi-month low after the RBA considered coronavirus and Aussie bushfires as having a temporary effect on the GDP. In doing so, the Aussie central bank left the benchmark interest rate unchanged at 0.75%. However, the resulted pullback is still below near-term key resistances, namely November month low, not to mention a confluence of 21-day SMA and five-week-old falling trend line. Hence, the bears can keep their short positions intact with 0.6670 being the short-term target. Should there be further weakness below 0.6670, a downward sloping trend line from August 2019, at 0.6650 now, will be the key to watch.

On the upside, a sustained break beyond the November 2019 low of 0.6751 could challenge December 10 bottom surrounding 0.6800. However, buyers should remain cautious unless prices offer a daily closing above a resistance-confluence including 21-day SMA and short-term falling trend line around 0.6825/30.

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