#AUDUSD @ 0.67170 extends pullback from intraday high, stays near two-year low., @nehcap view: Further weakness expected (Pivot Orderbook analysis)

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• AUD/USD extends pullback from intraday high, stays near two-year low.
• PBOC cuts 14-day reverse repo rate to 2.15%.
• Ascending support line from mid-July restricts immediate downside.
• Bearish MACD signals, downbeat RSI favor sellers inside four-month-old bearish channel, 50-DMA restricts immediate recovery.

The pair currently trades last at 0.67170.

The previous day high was 0.6724 while the previous day low was 0.667. The daily 38.2% Fib levels comes at 0.6703, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6691, expected to provide support.

AUD/USD pulls back from its intraday high towards 0.6700, around 0.6720 by the press time, as it reacts to the People’s Bank of China’s (PBOC) recent rate cut during Monday’s Asian session.

That said, the Chinese central bank lowers the 14-day reverse repo rate by 10 basis points (bps) to 2.15%. “With no reverse repos maturing on Monday, China central bank injects 12 billion yuan on the day,” per Reuters.

Technically, the bearish MACD signals and the downbeat RSI (14), not oversold, keeps AUD/USD sellers hopeful of revisiting an upward sloping support line from mid-July, near 0.6700 by the press time.

It should, however, be noted that the Aussie pair’s downside past 0.6700 needs validation from the latest multi-month low near 0.6680 before aiming for the support line of a four-month-long bearish channel, close to 0.6565 at the latest.

On the contrary, recovery moves remain elusive until the quote crosses the 50-DMA hurdle surrounding 0.6890. However, a 12-day-long horizontal resistance and 50-SMA on the four-hour chart, near 0.6770-75, seem to restrict immediate upside.

Above all, the AUD/USD bears keep reins until the quote stays below the stated bearish channel’s resistance line, around 0.7060 by the press time.

Trend: Further weakness expected

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6726 at the time of writing. Pair opened at 0.6718 and is trading with a change of 0.12% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6825, 50 SMA 0.6888, 100 SMA @ 0.6951 and 200 SMA @ 0.7107.

The previous day high was 0.6724 while the previous day low was 0.667. The daily 38.2% Fib levels comes at 0.6703, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6691, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6684, 0.665, 0.663
• Pivot resistance is noted at 0.6738, 0.6758, 0.6792

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