Ella 
In early European trading on Wednesday, AUD/USD regained some lost ground around 0.6470 after retreating to a low of 0.6450. AUD/USD came under pressure after the monthly consumer price index (CPI) showed that inflation fell to a 17-month low in July. The figure could convince the Reserve Bank of Australia to keep rates on hold at its next policy meeting.
From a technical point of view, the hourly chart shows that AUD/USD is trading above the 50 and 100 hourly exponential moving averages, maintaining an upside bias, suggesting that the AUD/USD has the least upside resistance.
It is worth noting that the relative strength index is in the bullish zone above 50, temporarily challenging AUD/USD’s near-term upside.
AUD/USD has near-term resistance near the August 29 high of 0.6485. Further upside, the 0.6500-0.6505 area appears to be resistance. The said level is the confluence of the psychological round-number mark, the upper Bollinger Band and the August 14 high. Should AUD/USD break above this level, any significant follow-through buying could open room for AUD/USD to test 0.6522 (15 Aug high) and 0.6570 (9 Aug high).
On the downside, the 50 hourly EMA at 0.6445 is an initial support for AUD/USD. Another downside filter to watch is at 0.6439 (100 hourly EMA). A fall below this level would expose AUD/USD to a test of the next competitive level at 0.6410 (lower Bollinger Bands). In the event of a clear break below this level, the next stops would be 0.6380 (August 25 low) and then 0.6365 (August 17 low).
