AUDUSD bounces off a one-month-old horizontal support while poking the 200-SMA on the day of the Reserve Bank of Australia’s (RBA) scheduled monetary policy announcements. While a clear downside break of the 0.6345-60 support area opens the door for the Aussie pair’s fresh yearly low, currently around 0.6170, an upward-sloping support line from October 13 could act as a buffer near the 0.6250 level. That said, the 61.8% Fibonacci Expansion (FE) of the AUDUSD pair’s moves between September 13 to October 27, close to 0.6060, will be in the spotlight during the pair’s downside past 0.6170.
Alternatively, the 200-SMA and seven-day-old previous support, respectively near 0.6450 and 0.6480, could challenge the AUDUSD pair’s recovery moves. Following that, multiple levels marked since September 26 could test the buyers around 0.6540-50. It should, however, be noted that the pair’s successful run-up beyond 0.6550 could aim for the 61.8% and 78.6% Fibonacci retracement levels of the quote’s September-October downside, close to 0.6630 and 0.6755 in that order.
