AUD/USD Price Forecast: Bulls seem hesitant above 0.7000 as dovish RBA meets USD weakness

The AUD/USD currency pair managed to stay above the 0.7000 level on Thursday, buoyed by the Democratic victory in US midterm elections and falling US bond yields. However, investors remain cautious as the pair has not shown sustained momentum, and the potential for further gains remains uncertain. The Reserve Bank of Australia (RBA) surprised markets with a dovish policy shift on Tuesday, signaling a more cautious approach and hinting at possible rate cuts.

This has contributed to the downward pressure on the Australian Dollar (AUD), limiting the upside for the AUD/USD pair. Traders are holding off on aggressive bets until the release of key US economic data, such as the Nonfarm Payrolls (NFP) report, and key speeches from Federal Reserve members. The broader context of the Middle East crisis may also provide a boost to the USD.

From a technical standpoint, the AUD/USD pair is displaying a bearish bias near the 200-day Simple Moving Average (SMA) and within a Fibonacci retracement range, with key resistance levels at the 38.2% and 50.0% levels. Support is expected near the 23.6% Fibonacci level and a more solid support around the 0.6893 area.