• FxWirePro: AUD/USD dented after dovish RBA minutes, break below 0.74 handle to see further weakness

    Source: FxWire Pro - Technicals / 17 Jul 2018 00:35:40   America/New_York

    • Aussie holds moderate losses after dovish RBA minutes, intraday bias neutral.
       
    • RBA minutes released earlier today showed the policymakers do not see a strong case for a near-term move in interest rates.
       
    • Policy makers said household debt risk, slow wage growth and downside risks to the global economy from trade tensions, suggest that the interest rates will likely stay at a record low of 1.5 percent for some time.
       
    • AUD/USD upside capped at 21-EMA, the pair slipped lower from session highs at 0.7425 to hit session lows at 0.7402.
       
    • Downside finds strong support at 0.74 handle and 5-DMA at 0.7409. Break below will see further weakness.
       
    • Technical indicators on daily charts have a neutral bias. That said, bullish divergence on RSI and Stochs keeps scope for upside.
       
    • Upside in the pair has been capped at 21-EMA at 0.7426. Decisive break above could see further upside.

    Support levels - 0.7410 (5-DMA), 0.7360 (July 12 low), 0.7290 (trendline)

    Resistance levels - 0.7492 (55-EMA), 0.75, 0.7575 (110-EMA)

    FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 157.868 (Bullish), while Hourly USD Spot Index was at -147.492 (Bearish) at 0400 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
     

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