The AUD/USD currency pair is trading around 0.69 handles in a bearish market. At the opening of the week, the AUD/USD currency pair trading near 0.6910, fluctuate in the tight range as investors await the Fed rate decision and the U.S.- China trade war updates. Overall, the AUD/USD pair is dominated by bears.
Last week the pair closed with a solid US Q2 Gross Domestic Product news that was unexpectedly better, helping greenback to surge against the Aussie. With that, the Aussie hit the lowest level of the month against the U.S. dollar. Investors are concerned about 25bp rate cut by the U.S. Federal Reserve which is expected by the end of this week.
The US-China discussions which provide another potential risk begins from tomorrow while other major catalysts such as GDP, Aussie CPI, and the Fed rate decisions are all on tap.
Daily Support and Resistance
Pivot Point 0.6921
On the technical side, AUDUSD is trading below 0.6920 support becomes resistance level. This level used work as the double bottom until the previous week, but lately got violated in the back for weaker Aussie and strong U.S. dollar.
For now, the support is likely to be found around 0.6875 and 0.6830. While resistance is likely to be found at 0.6920.
Today, the closing of Doji pattern on the daily timeframe can help trigger bullish bias among traders and I will be looking to capture a bullish retracement until 0.6940 later in coming days.