AUD/USD downside pauses at 38.2% Fib, short break below

FX:AUDUSD   Australian Dollar/U.S. Dollar
180 0 7
AUD/USD             downside stalls just shy of 38.2% Fib of Jan to April rise at 0.7450, further downside can be seen only on breaks below.

The pair has come under strong selling pressure following the somewhat surprising 25bp rate cut by the RBA on Tuesday to a new record low interest rate of 1.75%.

Also, CFTC futures data in the last few weeks showed massive AUD long commitment among asset managers which are being squared post policy meet, adding to the downside.

Technicals on daily charts are biased lower. Break below 38.2% Fib can see test of 0.7415, 0.74 and then 0.7340 (weekly cloud base).

The pair has edged above daily cloud top at 0.7486 and finds immediate resistance at 0.7560 ( trendline ).

Good to short breaks below 0.7450, target 0.7410/0.7340
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