AUD/USD Price Analysis: Short-term inverse head-and-shoulders in focus ahead of RBA

• AUD/USD recedes from intraday high while teasing a bullish chart formation.
• 200-bar SMA adds to the upside barrier, 0.7065/60 can offer strong downside support.
• RBA is expected to stand pat while citing coronavirus (COVID-19) worries.

AUD/USD eases to 0.7123 while stepping back from day’s top during the early Tuesday. In doing so, the pair seesaws around the neckline of a short-term head-and-shoulders bullish pattern ahead of the key RBA monetary policy meeting.

Read: When is the RBA Interest Rate Decision and how could it affect AUD/USD?

Considering the pair’s failure to stay positive beyond 0.7200, coupled with anticipated dovish halt by the RBA, the quote may refrain from confirming the mentioned chart formation.

Even if 0.7100 is likely immediate support for the pair traders to watch, sellers should remain cautious unless the quote slips below 0.7065/60 support-zone, comprising June 10 high and July 24 low.

Alternatively, a sustained rise past-0.7125 will have to cross 200-bar SMA level of 0.7156 to challenge the July month’s top, also the highest since early-2019, near 0.7230.

AUD/USD 30-minutes chart

Trend: Pullback expected