The AUDUSD pair, currently at 0.66548, has experienced a reversal from its previous recovery from a three-week low following the Reserve Bank of Australia’s decision to take no action. According to the opinion of Nehcap, there is anticipation for the currency pair to decline further.

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• AUD/USD reverses Monday’s recovery from three-week low after RBA inaction.

The pair currently trades last at 0.66548.

The previous day high was 0.674 while the previous day low was 0.6648. The daily 38.2% Fib levels comes at 0.6705, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6683, expected to provide resistance.

AUD/USD drops 0.90% intraday to 0.6655 heading into Tuesday’s European session as the Aussie pair reverses the previous day’s recovery moves after the Reserve Bank of Australia’s (RBA) second consecutive inaction. In doing so, the risk-barometer pair also justifies the downside break of an ascending trend line from Friday, as well as the looming bear cross on the MACD, not to forget the downbeat RSI (14) line.

Also read: AUD/USD slumps 40 pips below 0.6700 on RBA inaction, US data eyed

With this, the Aussie pair appears all set to challenge the convergence of a two-month-old rising support line and 61.8% Fibonacci retracement of the AUD/USD pair’s late May to mid-June upside, near 0.6630.

However, the quote’s further downside appears difficult as the RSI (14) is below 50.0, suggesting bottom-picking.

Hence, the AUD/USD bears will need confirmation of the impending death cross, a condition where the 50-SMA pierces the 200-SMA from above.

Even so, lows marked on June 29 and 05, respectively near 0.6595 and 0.6580, can act as the final defense of the Aussie pair bears.

On the flip side, the support-turned-resistance line, close to 0.6690, quickly followed by the 0.6700 round figure, prods the AUD/USD buyers.

Following that, a convergence of the 50-SMA and 200-SMA, around 0.6735 at the latest, will precede a downward-sloping resistance line from July 13, near 0.6795, to act as the final defense of the AUD/USD bears.

Trend: Further downside expected

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.666 at the time of writing. Pair opened at 0.6717 and is trading with a change of -0.85% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6741, 50 SMA 0.67, 100 SMA @ 0.6693 and 200 SMA @ 0.6731.

The previous day high was 0.674 while the previous day low was 0.6648. The daily 38.2% Fib levels comes at 0.6705, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6683, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6664, 0.661, 0.6572
• Pivot resistance is noted at 0.6755, 0.6793, 0.6847

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