Sellers had their chance to try and breach key support at 0.6500 last week but the figure level held on the daily chart. And now, buyers are turning things around. However, they are running into a major test to start the new week via the RBA's policy decision. Here's a look at how the technical picture is shaping up:
The latest rebound is seeing price move to test the 50.0 Fib retracement level of the swing lower since May. That level is seen at 0.6638 and is holding buyers back for now.
But at least the near-term chart shows that the bias is favouring buyers, with price action holding above both the 100 (red line) and 200-hour (blue line) moving averages. That is seen around 0.6544-64 will be the key downside region for buyers to hold in order to maintain the latest rebound momentum. Further support is then seen at the 0.6500 mark once more.
As for topside levels, the 50.0 Fib retracement level at 0.6638 will offer a more immediate test before the pair might start moving back towards testing its 200-day moving average at 0.6690 again. The more important 100-day moving average - which held back gains all through April and May - sits at 0.6746.
