AUDUSD – bulls hold grip ahead of RBA policy meeting on Tuesday

AUDUSD keeps firm tone on Monday, despite Friday’s spike and subsequent pullback, though with initial warning that traders may opt for a partial profit taking after strong rally in past two days, when the pair advanced 2%.

Stretched daily studies add to signals of correction, but dips are likely to be shallow and ideally contained by 100DMA (0.6579) to position for fresh attack at key 0.6660/70 zone (multiple tops of Mar / Apr /May, also near Fibo 61.8% of 0.6871/0.6362) violation of which to spark acceleration towards 0.6750 zone.

The action is also supported by two large consecutive bullish weekly candles, with expectations that Australia’s policymakers may show more hawkishness in Tuesday’s RBA policy meeting (rate hike is still on the table) expected to further underpin Aussie dollar.

Res: 0.6644; 0.6667; 0.6676; 0.6750
Sup: 0.6600; 0.6579; 0.6556; 0.6520