AUD/USD is showing a bearish divergence at 0.6765 area

by · FXStreet

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  • The Aussie is showing bearish divergence at five-month highs.
  • Hawkish RBA minutes and hopes of Fed cuts have boosted support for the AUD.
  • The Dollar remains depressed despite Fed officials' efforts to push back rate cut hopes.
     

Investors´ appetite for risk as they see the end of the central bank´s tightening cycles has pushed the Aussie to nearly five-month highs. The pair is nearing the 0,6810 resistance area although the bearish divergence on the 4-hour chars suggests a reversal might be in the cards.

A hawkish RBA and Fed cut hopes are supporting the Aussie

The minutes of the RBA´s last meeting, released on Tuesday reflected a hawkish tone, with the bank keeping the options open for further tightening despite the “encouraging signs” on inflation.

This, coupled with the overall Dollar weakness, underpins support for the Aussie. The US Dollar Index remains close to four-month lows as investors ignore Fed officials’ efforts to push back hopes of March cuts.

Technical indicators remain bullish although the mentioned divergence and the hesitant mood seen on Wednesday might be anticipating a reversal or, at least some consolidation.

Immediate resistance lies at 0.6775, ahead of late July highs at 0,6820 and 0.6845. Support levels are 0.6735 and 0.6690.

Technical levels to watch

AUD/USD

Overview
Today last price0.6763
Today Daily Change0.0001
Today Daily Change %0.01
Today daily open0.6762

 

Trends
Daily SMA200.662
Daily SMA500.6487
Daily SMA1000.6463
Daily SMA2000.6578

 

Levels
Previous Daily High0.6775
Previous Daily Low0.6701
Previous Weekly High0.6729
Previous Weekly Low0.654
Previous Monthly High0.6677
Previous Monthly Low0.6318
Daily Fibonacci 38.2%0.6746
Daily Fibonacci 61.8%0.6729
Daily Pivot Point S10.6717
Daily Pivot Point S20.6672
Daily Pivot Point S30.6643
Daily Pivot Point R10.6791
Daily Pivot Point R20.682
Daily Pivot Point R30.6865

 

 

 

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