Due to its proximity to both Friday's intraday support area and today's pivot point (0.6880), the AUD/USD pair is currently consolidating near 0.6870, which is not unexpected.
This time, a falling channel's peak at 0.6870 has been preventing the AUD/USD from advancing since Thursday.
Do these developments portend further losses for the AUD/USD?
The Reserve Bank of Australia's (RBA) meeting minutes may determine the direction of the AUD/USD pair going forward.
The AUD/USD pair may break through the resistance area and hit fresh weekly highs if information from the most recent RBA meeting indicates that the central bank will raise interest rates even more.
However, AUD/USD might decline if the RBA group isn't as hawkish as its initial statement suggested or if additional traders express concern over global (but primarily Chinese) growth in the upcoming trading days.
The S1 (0.6850) of today's Standard Pivot Points appears to be a suitable starting point for AUD bears, but if enough bearish momentum develops, AUD/USD could possibly fall to the S2 (0.6830) near today's lows.
