A look at AUD/USD going into the RBA July monetary policy decision


AUD/USD trades in between both key hourly moving averages

AUD/USD H1 02-07

The pair is holding steady on the day with buyers finding support around the swing region of 0.6950-55 as well as the 38.2 retracement level @ 0.6958 earlier, after sellers tried to make a break below the 200-hour MA (blue line).

Right now, price is trading in more neutral territory in the near-term as we await the RBA decision. As mentioned here, I reckon the risks are tilted to the upside for the aussie going into the meeting but we’ll see what they say later in a couple of minutes.

As for any major reaction, look towards a test/break on either side of the key hourly moving averages with the 100-hour MA (red line) limiting upside @ 0.6995 alongside offers at 0.7000. Further upside resistance is seen at the 100-day MA @ 0.7034 and that will be a key area for sellers to maintain the overall bearish bias in the pair.

Meanwhile, the 200-hour MA @ 0.6968 is the area to look out for in the event of any downside move. Further support can be seen around 0.6950-55 before staggering towards the Fib retracement levels highlighted in the chart above.

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