AUD/USD Price Analysis: Bulls have the upper hand, RBA eyed for fresh impetus

• AUD/USD attracted some dip-buying on Monday and refreshed daily tops in the last hour.
• A modest USD pullback extended some support to the pair amid the prevalent risk-on mood.
• Investors now look forward to the RBA on Tuesday ahead of the critical FOMC policy meeting.

The AUD/USD pair showed resilience below the key 0.7500 psychological mark and attracted some dip-buying on the first day of a new week. The pair built on its steady intraday ascent and climbed to fresh daily tops, around the 0.7525 region during the early North American session.

The US dollar struggled to preserve its modest intraday gains, instead witnessed a modest pullback from two-and-half-week tops. This, along with the risk-on mood, acted as a tailwind for the perceived riskier aussie and assisted the AUD/USD pair to find decent support near the 0.7485 region.

The upside, however, seems limited as investors might refrain from placing aggressive bets heading into this week's key central bank event risks. The Reserve Bank of Australia will announce its policy decision on Tuesday and set the tone ahead of the critical FOMC policy update on Wednesday.

Looking at the technical picture, the recent strong positive move witnessed over the past one month or so stalled near the very important 20-day SMA. The mentioned barrier, currently around the 0.7555 region, should now act as a key pivotal point and help determine the near-term trajectory.

Meanwhile, technical indicators on the daily chart are holding comfortably in the bullish territory and support prospects for additional gains. That said, it will still be prudent to wait for a sustained move beyond the 200-DMA before positioning for a further appreciating move for the AUD/USD pair.

The next relevant resistance is pegged near July monthly swing highs, around the 0.7600 round figure, which if conquered should pave the way for a move towards testing the 0.7650-55 intermediate hurdle. The AUD/USD pair could extend the momentum further and aim to reclaim the 0.7700 mark.

On the flip side, the 0.7485-80 region now seems to have emerged as immediate strong resistance. A convincing break below might prompt some long-unwinding and accelerate the slide towards the 0.7400 mark. The corrective pullback could further get extended towards the 0.7325-20 static support.

AUD/USD daily chart

Technical levels to watch