The Reserve Bank of Australia announced no change in interest rates as per expectations, but it was considered a more dovish decision.
As a result, the price of the AUDUSD moved lower and back toward the lows from Friday’s trading.
US yields moving higher has kick started the move higher in the US dollar as well and that has the price extending to – and through – the low price from Friday at 0.63722.
Stay below that level would have traders looking toward the August 6 low at 0.63478. Move below that level and the next target comes in at 0.6337 which is the low price going back to November 10. The last three swing lows came in at 0.6337, 0.6363 and 0.63478 (see red numbered circles on the chart below). A move below that area would have traders targeting another swing area between 0.62698 to 0.6293.
On the topside, he would now take a move above the 0.6400 level to give the buyers a victory from a technical perspective. The falling 100 hour moving average of 0.6422 would be the next upside target on a break of the 0.6400 level.
Absent that in the sellers in firm control
AUDUSD Technical Levels After Dovish RBA Decision
The Reserve Bank of Australia’s (RBA) decision to keep interest rates unchanged, with a dovish tone, has led to a decline in the AUDUSD. This move has been further supported by rising US yields and a stronger US dollar.
Resistance Levels
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0.6400: Break above this level needed for buyers to gain technical control.
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0.6422: Falling 100-hour moving average, next upside target on a break of 0.6400.
Support Levels
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0.63722: Friday’s low, recently broken.
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0.63478: August 6 low, next support target.
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0.6337: November 10 low and recent swing low, key support level.
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0.62698-0.6293: Swing area and potential target, further support below 0.6337.
Sellers are in control
This article was written by Greg Michalowski at www.forexlive.com.
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