The RBA may be expected to stay on hold but that doesn't mean the currency will
It's RBA day and if you haven't already, check out Eamonn's plethora of previews.
No change for the RBA cash rate is expected by the world and his mate, so this one should be plain sailing. The main risk comes from any changes to language in the statement.
Irrespective of what's expected, the price could still move around so it's apt to have some levels highlighted that could contain the prices, or bring bigger moves if broken.
Going on the H1 chart, the 0.7600-0.7700 looks to be the likely range.
AUDUSD H1 chart
Ahead of 0.7600 we have minor support around 0.7615/20, which looks to be natural protection of 0.7600. Just under, the 0.7570/75 level has been S&R during Jan. Another minor support level around 0.7540/45 could come into play before we test support ahead of 0.7500 at 0.7510/15. Should something crazy happen and 0.7500 breaks, there's support at 0.7490 too.
On top, 0.7695/0.7700 looks a fairly strong two day double top. If you pull out to the H4 chart, you'll see how much resistance there's been there in 2016 around 0.7720/30 (the level can be seen going back as far as Mar 2016), and up to the 0.7760/70 highs.
AUDUSD H4 chart
Given the expected outcome from the RBA, there's certainly some nice strong levels to fade any moves towards them on moderate comments from the RBA. While they are sitting on their hands, they remain on the dovish side of the street in language so it could be the downside that gets some attention.
