AUD/USD Seems Vulnerable to Drop Below 0.7330 Support
pair continues to slide further during European session and tested its
immediate important support confluence near 0.7330 level.
After an initial pull-back to 0.7385 level during the Asian session, bears regained control to drag the pair to session low. With the RBA, in its Quarterly Statement on Monetary Policy, maintained its dovish commentary and showing willingness to cut interest rates further, the pair might continue to languish in the near-term.
The pair is currently trade near its immediate important support confluence near 0.7330 level, comprising of 100-day SMA and 50% Fibonacci retracement level of 0.6827-0.7834 up-move and weakness below this immediate support seems to further accelerate the fall.
Technical levels to watch
Below 0.7330 support, bears would be aiming for level below 0.7300 round figure mark and test 200-day SMA support near 0.7260 area. With daily RSI approaching near-term oversold conditions, drop below 200-day SMA seems unlikely or could be limited at 0.7230-20 support nearing 61.8% Fibonacci retracement level.
On the flip side, in order to witness some near-term recovery the pair needs to pierce through day's peak resistance near 0.7385 level. Above 0.7385-0.7400 resistance, the pair is likely to extend its rebound towards 38.2% Fibonacci retracement level resistance near 0.7450 level.