Following the disappointment of the financial community, which has seen the Reserve Bank of Australia take a break from its hawkish rate policy, the Australian dollar showing weakness on both yesterday and today sessions.
At the moment trading down 1% to 0.6546, and broke short term static support at 0.6593. Demand line connecting higher lows is less than 40 pips away and in case selling pressure would continue the pair would test its 2023 low at 0.6448. Beneath this level possible a test near are 0.62.
Positive market sentiment would emerge likely in case the demand line would provide a strong rebound with the rate regaining area 0.66 , but the most relevant moving averages are almost overlapped in area 0.6710 and as long AUD/USD would trade beneath them there is no possibility to change opinion from a bearish-neutral view. Long term bullish scenario in case of a bullish breakout of the demand line linking lower highs.
