FxWirePro: AUD/USD rangebound ahead of RBA Meeting Minutes, technical bias bearish

AUD/USD chart on Trading View used for analysis

• AUD/USD is trading in tight range, sees weak start to the week.
   
• Investors remain cautious amid slowing global economic growth.
   
• All eyes on major central bank events with RBA Meeting Minutes due Tuesday and FOMC policy decision due Wed.
   
• AUD/USD is trading below 0.72 handle and the sell-off to levels below 0.71 if the Fed retains hawkish bias, squashing expectations of 2019 rate hike pause.
   
• The Fed funds rate futures also continued to price the chance of a rate hike this week around 75% with a March 2019 rate hike given a 30% chance.
   
• Technical bias for the pair remains bearish. Price has broken below 50-DMA.
   
• Stochs and RSI are sharply lower and MACD also supports downside. 
   
• The pair is currently holding support at daily cloud and break below will see drag lower.
   
• Next major support on the downside lies at 78.6% Fib at 0.71. Further weakness on break below.
   
• 50-DMA is immediate resistance and break above 20-DMA at 0.7246 could see further upside.

Support levels - 0.7163 (61.8% Fib), 0.71 (78.6% Fib and psychological support)

Resistance levels - 0.7193 (50-DMA), 0.7246 (20-DMA)

Recommendation: Stay short on decisive break below daily cloud, SL: 0.7250, TP: 0.71/ 0.7085

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.