Aussie(AUDUSD) has reclaimed its day’s low of 0.7083 as volatility rises amid a risk-off environment.

Aussie (AUDUSD) pair has retested its day’s low of 0.7083, as investors have been risk-averse ahead of the Federal Reserve’s (Fed) interest rate decision this week. The US Dollar Index (DXY) has been exhibiting wild gyrations in the 101.40-101.57 region as volatility has increased considerably. S&P500 futures have given up their entire Friday gain and are anticipated to stay on edge in a risk-off environment. US 10-year Treasury rates have fallen below 3.51%.

Aussie (AUDUSD) Wyckoff Inventory Distribution forming suggests a bearish reversal.

Aussie (AUDUSD) is displaying Wyckoff’s inventory distribution on an hourly basis, indicating a movement in inventory from institutional investors to retail participants. The Australian currency has also seen an Outthrust pattern, indicating the existence of responding sellers.

The support was provided by the 50-period Exponential Moving Average (EMA) at 0.7100. The Australian Dollar is currently cushioning the US Dollar.

While the Relative Strength Index (RSI) (14) is bouncing between 40.00 and 60.00, this implies that investors are looking for a new trigger for a power-pack action. If the asset falls below the January 25 low of 0.7062, US Dollar bulls will pull it toward psychological support around 0.7000, followed by the January 17 low of 0.6948. A break over the August 11 high of 0.7137.

On the other hand, will push the major toward round-level resistance at 0.7200. If the latter is breached, the asset will be exposed to its June 3 high of 0.7283. A fall below the December 29 low of 0.6710, on the other hand, will take the major down to the December 22 low of 0.6650, followed by November 21 was 0.6585.