Gives sellers cause for pause
The RBA announced no change in policy. They also said that:
- A rising AUD would slow the economy, and
- Higher AUD is restraining price pressures
That helped to push the pair to a new low going back to July 14th. The low reached 0.77849, but still stalled ahead of the 100 day MA at 0.77731. The price has been above the 100 day MA since June 23rd. The failure to get to and through the key 100 day MA, has led to buying.
Drilling to the hourly chart, the pair has move above a topside trend line at the 0.78185 level currently. That is more bullish technically. The price has stalled against the MA a number of times (see red circles).
Although bullish, the 100 hour MA looms ahead. That MA comes in at 0.7831 (blue line in the chart below). If the bulls are to take more control (against the wishes of the RBA), gettting and staying above that MA will be eyed. A break above is another step but with the price action over the last few weeks being to the downside, there are a lot of targets that get in the way. the 38.2% retracement at 0.78615, and 200 hour MA (green line) at 0.7878 (and moving lower) are the next key target levels to the upside.
