AUD/USD Technical Analysis: 1H & 4H RSI below 30, minor bounce likely

The AUD/USD pair could see a minor bounce from five-week lows as the relative strength indices (RSI) on the hourly and 4-hour chart is reporting oversold conditions. 

Hourly chart

As seen above, the RSI dived out of the ascending trendline after the Aussie dollar slipped to five-week lows near 0.7060. The indicator is now reporting oversold conditions with below 30 reading. 

That said, corrective bounce, if any, will likely find fresh offers above 0.7080, as the AU-US 10-year yield spread is falling in the AUD-negative manner. The Reserve Bank of Australia revised lower inflation and growth forecasts earlier today and reiterated that the probability of a rate cut is now evenly balanced with a hike. Further, the key MAs (50, 100, and 200) on the above chart are trending south, indicating a bearish setup. 

Trend: minor bounce likely