AUD/USD Technical Analysis: Stuck in a falling channel ahead of the RBA

• The AUD/USD pair is stuck in a falling channel, as seen in the hourly chart. The Reserve Bank of Australia (RBA) is seen keeping rates unchanged at the record low of 1.5 percent today and will likely retain a neutral stance.
• An upside break of the falling channel would allow a re-test of the Sept. 21 high of 0.7304.
• Also, the descending 50-day exponential moving average (EMA) has proved a tough nut to crack since the end of July. As a result, a daily close above that level is needed to confirm a bearish-to-bullish trend change. As of writing, the 50-day EMA is located at 0.7278.

Hourly Chart

Spot Rate: 0.7233

Daily High: 0.7234

Daily Low: 0.7218

Trend: Neutral

Resistance

R1: 0.7238 (Aug. 24 low)

R2: 0.7278 (50-day EMA)

R3: 0.7304 (Sept. 21 high)

Support

S1: 0.7232 (200-hour EMA)

S2: 0.7202 (Sept. 28 low)

S3: 0.7169 (61.8% Fib R 0.7085/0.7304)