100 hour MA and trend line continue to be a key level above
The RBA is expected to announce no change in policy (11:30 PM ET Monday/0330 AM ET Tuesday). The price action in the pair seems to positioning between some key support and resistance.
Looking at the AUDUSD daily chart, the price action today did take out last week's low but only by a few pips. The low reached 0.7795. The next downside targets come in at 0.7777 - the swing high from November 2016 - and the 100 day MA at 0.7769. The low today did not really test those levels but should the bearish bias restart, keep that area in mind. I would expect, the 100 day MA to give cause for pause on the first test at least (with stops on a break).
The rebound today, has reached up to 0.7838. That high came up short of a topside trend line and 100 hour MA. They both come in at 0.7844 currently. The price has not traded above the 100 hour MA since breaking lower on September 21.
The trading clues are mixed. In the shorter term from the hourly chart, the pair has remained below trend line and 100 (and 200) hour MAs. That is bearish.
The daily chart shows that we made new lows today, but that move failed and there is some key support as well against the 100 day MA. Stay above is bullish.
As a result, expect traders to take a breather rand look for a catalyst for a break. The RBA will meet and announce their rate decision in the new trading day. No change is expected. However, the comments may be the catalyst for the next push.
CLICK here for some previews of the decision put together by Eamonn.