AUD/USD's upside July channel stalling around 0.77 handle

AUD/USD remains in a consolidative phase around the 0.77 handle, faded from the 0.7750 territory.

AUD/USD's upside has slowed down from late July's rally at 0.7450 on a more dovish RBA concerned above the value of their currency while below their inflation target bracket of between 2-3% still and having cut interest rates recently by 25bps to the lowest level on record. 

"RBA's Governor Glenn Stevens hit the wires in the US afternoon, stating that the global economy is ready to absorb a US rate hike, venting his frustration over the inaction of the world's largest economy central bank," explained Valeria Bednarik, chief analyst at FXStreet.

How volatile has AUD/USD been?

Hourly 2-Standard Deviation Volatility Bandwidth is currently 57 pips, and has been shrinking, while the ATR (14) is currently 16 pips. Daily 2-Standard Deviation Volatility Bandwidth is at 325 pips and expanding. The average movement for the current hour has been for 16 pips per hour, over the last four weeks. Meanwhile, 1:00-2:00 GMT represents peak for volatility, with an average movement of 27 pips over the same period.

What price levels and patterns have to be considered?

Spot is presently trading at 0.7693, and next resistance can be seen at 0.7695 (Daily Open), 0.7697 (Hourly 20 EMA), 0.7699 (Daily Classic R1), 0.7702 (Monthly High) and 0.7702 (Weekly High). Next support to the downside can be found at 0.7690 (Hourly 100 SMA), 0.7688 (Daily Low), 0.7672 (Hourly 200 SMA), 0.7669 (Weekly Classic PP) and 0.7668 (Daily Classic PP). Regarding candlestick formations, we can see Doji formation on the 4-hour .