AUD/USD Price Analysis: Reverses RBA-led gains as bears eye 0.7400
- AUD/USD not only reversed post-RBA jump but also refresh intraday low.
- 100-HMA, 12-day-old support line challenges intraday sellers as MACD teases bears.
AUD/USD drops back towards 0.7400, down 0.25% around an intraday low of 0.7410, during a volatile Tuesday morning.
The Aussie pair initially jumped over 30 pips as the Reserve Bank of Australia (RBA) surprised markets with bond tapering plans. However, the following declines have been sharper and push the MACD towards flashing bearish signals.
Read: RBA: Decision to extend the bond purchases reflects delay in recovery, uncertainty of Delta outbreak
Even so, a convergence of 100-HMA and an upward sloping trend line from August 20, near 0.7405, followed by the 0.7400 threshold, challenges the AUD/USD sellers.
Also acting as the downside filter is the 200-HMA level of 0.7345, a break of which will make the quote vulnerable to decline towards late August lows near 0.7280.
On the contrary, a three-day-old resistance line near 0.7470 guards the AUD/USD pair’s immediate upside ahead of a four-month-long descending hurdle line close to 0.7475–80.
It’s worth noting that a successful rise past 0.7480 will direct the bulls to July’s top surrounding the 0.7600 round figure.
AUD/USD: Hourly chart
Trend: Pullback expected