The Aussie dollar fell sharply on Tuesday and tested the levels that mark the floor of two-week congestion (0.7064), after Reserve Bank of Australia published its statement following policy meeting.
The central bank left interest rate unchanged at 1.5% as expected, but markets saw the tone of the statement as dovish that increased pressure on Aussie.
The RBA removed 3% GDP forecast and said it will monitor developments that market took as shift to dovish bias.
Sustained break below 0.7064 pivot (congestion floor / Fibo 61.8% of 0.7003/0.7168 upleg) would generate negative signal and would risk retest of key 0.70 support zone (08 Mar low / daily cloud base).
Fresh bearish momentum and MA’s turning to negative setup on daily chart add to soured sentiment after RBA and negative near-term outlook.
Broken 10SMA marks initial barrier at 0.7101, guarding upper pivot at 0.7121 (55SMA) break of which is needed to neutralize downside risk.
Res: 0.7083, 0.7101, 0.7121, 0.7151
Sup: 0.7064, 0.7041, 0.7000, 0.6931
