AUD/USD Price Analysis: Downside looks likely to near 0.6700 ahead of RBA policy

• A downside bias is looming all-around ahead of the interest rate decision by the RBA.
• The asset may find a cushion around 0.6700 ahead as the downside looks imminent.
• A break into the 20.00-40.00 range by the RSI (14) is highly required to activate the declining mode.

The AUD/USD pair is experiencing modest selling pressure after facing barricades around 0.6800 in the late New York session. The major displayed a subdued performance on Monday after a gap down opening as investors shifted to the sidelines ahead of the interest rate decision by the Reserve Bank of Australia (RBA).

On a four-hour scale, the asset is declining towards the two-year low at 0.6682, recorded on July 14. A downside bias has been strengthened as the asset has faced barricades around the critical resistance placed from the August 30 low at 0.6846.

The 20-and 50-period Exponential Moving Averages (EMAs) at 0.6811 and 0.6846 respectively are declining, which adds to the downside filters.

However, the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which indicates a consolidation ahead. For downside momentum, the RSI (14) is required to drop into the bearish range of 20.00-40.00.

Should the asset drop below Thursday’s low at 0.6770, the greenback bulls will get activated and may drag the aussie bulls towards the round-level support at 0.6700, followed by the 6 March 2020 high at 0.6657.

Alternatively, the aussie bulls could regain strength and may send the asset towards Wednesday’s high at 0.6904 and August 23 high at 0.6964, if the asset oversteps Friday’s high at 0.6855 decisively.

AUD/USD four-hour chart