AUD/USD Price Analysis: At make or a break around 0.6700 ahead of RBA policy

• The Australian Dollar bulls have attempted a recovery after plummeting below 0.6700 but still need more filters.
• Volatility is to remain at its peak ahead of the interest rate decision by the RBA.
• A slippage inside the bearish range of 20.00-40.00 by the RSI (14) will trigger a bearish momentum.

The AUD/USD pair has attempted a recovery after dropping below the round-level cushion of 0.6700 in the early Asian session. The Aussie asset has managed to reclaim the 0.6700 hurdle again but is still on the tenterhooks ahead of the monetary policy announcement by the Reserve Bank of Australia (RBA).

Meanwhile, the US Dollar Index (DXY) has corrected marginally to near 105.30, however, the upside bias is still intact amid the risk-off market mood. The upbeat US Services data triggered the risk aversion theme in global markets.

The Aussie asset is hovering around the upward-sloping trendline plotted from November 21 low at 0.6585 on an hourly scale. Monday’s sell-off in AUD/USD dragged it below the 20-and 50-period Exponential Moving Averages (EMAs) at 0.6766 and 0.6748 respectively, which indicates that the short-term trend has tilted south and more downside is expected.

Meanwhile, the Relative Strength Index (RSI) (14) is hovering around 40.00. A slippage inside the bearish range of 20.00-40.00 will trigger a bearish momentum.

Should the asset break below Friday’s low at 0.6687, the US Dollar bulls will drag the Aussie pair towards November 29 low at 0.6640 and the horizontal support plotted from November 8 high at 0.6551.

Alternatively, a break above November 29 high around 0.6750 will drive the Aussie asset toward the round-level resistance at 0.6800, followed by Monday’s high around 0.6850.

AUD/USD four-hour chart