AUDUSD rebounds following the RBA minutes release

AUDUSD pair remains neutral to bearish following the release of the RBA meeting minutes and ahead of the US JOLTs job openings.

Break below key support level may signal additional downside risk. Meanwhile, the 50-period SMA acts as a critical resistance level – target level for the AUD bulls. 

Moving Averages (SMAs)

The 21-period SMA currently stands at 0.655540. Its downward trajectory suggests a potentially weakening bullish momentum. Moving below it could signal further downside pressure.

The 50-period SMA, slightly lower at 0.654423, may act as a critical resistance level. If the price fails to break above this moving average in the foreseeable future, it may encounter selling pressure.

The longer-term 100-period SMA sits at 0.659233, significantly higher than the current price. This divergence indicates a broader bullish trend, but the recent price action contradicts this.

Relative Strength Index (RSI)

The 14-day RSI currently stands at 40.00, placing it within the neutral zone (>70 – overbought, <30 – oversold), pointing towards the investor’s potential state of uncertainty as they await for more catalysts to act upon.

Moving Average Convergence Divergence (MACD)

The MACD value is -0.001504, indicating bearish momentum. The negative value suggests that selling pressure persists. The signal line further confirms the bearish outlook by sitting at negative -0.000561.

Support and Resistance Levels

The key immediate support level lies at 0.64797. A breach below this level could trigger further downside movement.

The key potential resistance level is the 50-period SMA, acting as a barrier for upward movement.

A sustained break above this moving average would signal potential bullish strength.