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AUDUSD drops back below 20-DMA on RBA day

Short
FX:AUDUSD   Australian Dollar / U.S. Dollar
Although the Reserve Bank of Australia (RBA) matched wide forecasts of inaction on early Tuesday, the Aussie central bank’s concerns over economic growth, due to the pandemic-led local lockdowns, weigh on the AUD/USD prices. Also challenging the quote buyers are the headlines from China and concerning the US stimulus, as well as debt ceiling extension. That said, the pullback from 20-DMA offers a selling opportunity with the 0.7220 acting as an immediate target ahead of six-week-old horizontal support near 0.7165-55. However, any further downside will be challenged by RSI conditions, which if ignored could refresh the yearly bottom that currency stands near the 0.7100 mark.

Meanwhile, an upside clearance of 20-DMA level of 0.7281 isn’t a green pass for the bull’s entry as a horizontal line from late July adds to the upside filters around 0.7320. It should be noted, however, that a clear run-up beyond 0.7320 enables the buyers to aim for a 61.8% Fibonacci retracement level near 0.7410 before highlighting the September month’s peak around 0.7480. Overall, AUD/USD remains in the bearish trajectory unless crossing the 0.7480 hurdle.