AUD/USD breaks channel base support, good to sell rallies
RBA minutes released, AUD/USD slumps despite no hint of August easing.
Minutes highlighted the central bank policy is not on a preset course and reiterated the data dependency of the central bank.
AUD/USD hit a new 10-day low of 0.7509 before recovering slightly to currently trade at 0.7530 levels.
Technically indicators have turned bearish. RSI points south and Stochs have rolled over from overbought zone.
The pair has broken below 23.6% Fib of 0.7145 to 0.7676 rally at 0.7550, and is currently holding above 20-DMA at 0.7516.
Below 20-DMA next support lies at 0.7473 (38.2% Fib of 0.7145 to 0.7676 rally), break below would signal bullish invalidation and lead to long unwind. Downside could then test 0.7300 (June 24 lows).
On the flipside resistance aligns at 0.7595 (channel base), close above would invalidate bearish bias.
Go short on rallies around 0.7535/40, SL: 0.7565, TP: 0.75/ 0.7475/ 0.74
Minutes highlighted the central bank policy is not on a preset course and reiterated the data dependency of the central bank.
AUD/USD hit a new 10-day low of 0.7509 before recovering slightly to currently trade at 0.7530 levels.
Technically indicators have turned bearish. RSI points south and Stochs have rolled over from overbought zone.
The pair has broken below 23.6% Fib of 0.7145 to 0.7676 rally at 0.7550, and is currently holding above 20-DMA at 0.7516.
Below 20-DMA next support lies at 0.7473 (38.2% Fib of 0.7145 to 0.7676 rally), break below would signal bullish invalidation and lead to long unwind. Downside could then test 0.7300 (June 24 lows).
On the flipside resistance aligns at 0.7595 (channel base), close above would invalidate bearish bias.
Go short on rallies around 0.7535/40, SL: 0.7565, TP: 0.75/ 0.7475/ 0.74
