FX.co ★ AUD/USD turned to the upside ahead of the RBA

The AUD/USD pair dropped as low as 0.6967 on Friday where it has found support. At the moment of writing, it was traded at the 0.7069 level below 0.7076 today's high. Still, the rebound may be only a temporary one ahead of the RBA.

DXY's sell-off forced the USD to drop, that's why the AUD/USD pair bounced back. The US Chicago PMI was reported at 65.2 points above 61.7 points expected, but the pair remains bullish in the short term.

In the early morning, the Reserve Bank of Australia is to release its Cash Rate which is expected to remain steady at 0.10%. Also, the RBA is likely to maintain its monetary policy unchanged.

AUD/USD 0.7000 stopped the sell-off

AUD/USD found support right below the 0.6993 static support failing to hit the 150% Fibonacci line. After the price ignored the weekly pivot point (0.7048), we cannot exclude a potential growth towards the 0.7100 psychological level.

The Ascending Pitchfork's lower median line (LML) and the 23.6% (0.7125) will be used as upside targets if the rate continues to grow.

AUD/USD outlook

Technically, the rebound is natural after its massive drop. Still, the current growth could be only a temporary one. New selling opportunities may arise if the growth ends around the 0.71 psychological level.

In my opinion, only a strong consolidation or a bullish pattern above 0.7000 could announce a broader leg higher.