AUD/USD: a reversal on the cards while above 0.7200?

AUD/USD is currently suppressed by the 100 sma on the 1hr chart having topped out last week at the highs of 0.7259.

The recovery has been shallow to meet the 20 sma on the 1hr time frame 0.7224 in the US session while the Yen took the spot light, rallying across the board in light of Central Bank sentiment. Elsewhere, US oil managed a slight recovery of below a $1.00bbls to the 1hr 100 sma at $48.16bbls supporting a slight bid in the commodity sector. Keep an eye on copper and the Chinese supply gut that seen a big fall this month already. Yellen will be the big event at end of the week while markets eye the next 'live' June meeting. 

June? A live meeting? Come again?

AUD/USD levels

AUD/USD has been better offered since the break below the 200 dma that is located at 0.7276 today when the bears went on to score a fresh low of 0.7174.However, the move was accompanied by a divergence of the daily RSI, as noted by analysts at Commerzbank, and this suggests a loss of downside momentum. "The market has eroded its accelerated downtrend and we would allow for a corrective rebound to 0.7300/0.7380." The analysts added, "We await a close below 0.7213 (61.8% retracement) to signal resumption of the down move to the 0.6828 January low."