The Australian Dollar bears have not ‘let-up’ on weighing on the support as they now carve out a fresh near-18-year low of US$0.5507 (as of writing).
Looking ahead, eyes turn the Reserve Bank of Australia (RBA) emergency monetary policy meeting at 2.30 pm, to discuss emergency responses to the COVID-19 outbreak.
Presently, the markets are pricing in a 25-basis point cut to the cash rate, to the RBA’s effective lower bound of 0.25 per cent, as well as the announcement of a quantitative easing program.
This will be followed by the Governor’s speech at 4.00 pm.
From the technical assessment, the 3-day Relative Strength Index (RSI) lookback remains deep into oversold territory.
From the recent objectives, it is now assessed the bears have temporarily reached their goal since the break of US$0.6000, as this gives a trajectory to the lows of 2003, with the targets holding to US$0.5600-US$0.5800 (met), now views the near 18-year lows at US$0.5500-10 as a possible short-term base. However, if this fails, then 0.5375-85 is exposed.
Due to the high volatility, the resistance is located at US$0.5715-45, with the immediate resistance located from US$0.5640-60.