The AUDUSD pair falls to 0.6780, extending its four-day losing skid, very early Wednesday morning in Europe. In doing so, the Aussie pair explains broad US Dollar gains while disregarding positive June Westpac Leading Index figures.
On Tuesday, the AUDUSD pair battled for direction, spending the day seesawing around 0.6814, where it began the day. The pair dropped throughout the first part of the day, owing to a gloomy atmosphere and the release of the Reserve Bank of Australia (RBA) meeting Minutes.
The paper had some hawkish surprises, with Australian officials agreeing that more tightening may be necessary, adding that “they would reconsider at the August meeting.
AUDUSD Technical Outlook
The risk-barometer pair’s downside violation of a one-month-old horizontal support zone, which is now immediate resistance around 0.6800-05, combines the negative MACD signals to entice the market.
As a result, the main currency pair is projected to return to a horizontal band comprised of various levels indicated since early June near 0.6740.
However, the 200-SMA level at 0.6730 and a seven-week-old rising support line around 0.6665 look to be difficult nuts to crack for AUDUSD bears to crack after that.
Meanwhile, the Aussie pair’s rebound above 0.6805 would be modest unless it hits the weekly high above 0.6840.
Nonetheless, the double top bearish chart pattern around the 0.6900 round figure looks to be the main barrier for AUDUSD bulls to overcome in order to recover market confidence.
Support levels: 0.6780 0.6740 0.6705
Resistance levels: 0.6825 0.6870 0.6905
