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The Australian dollar was seen trading higher against a basket of currencies earlier during the Asian session. One of the main reasons for the rise was the RBA. The RBA Interest Rate Decision was scheduled by the Reserve Bank of Australia. The forecast was lined up for a reduction in the rates from 2.25% to 2%. However, the outcome was a positive one, as the RBA kept the interest rates unchanged at 2.25%. The AUDUSD pair surged higher and blasted towards the 0.7850 area and looks set for more gains in the near term as long as the Aussie dollar buyers remain in control.
There was a critical bearish trend line formed on the hourly chart of the AUDUSD pair, which was broken around the release time. The pair surged higher after the release and traded towards the 0.7850 resistance area. The pair managed to clear the 50% fib retracement level of the last leg from the 0.7911 high to 0.7750 low. Moreover, the 100 and 200 hourly MA’s were also breached recently, which is a positive sign. If the pair settles above both MA’s, then it might encourage the Aussie dollar sellers in the near term. The next hurdle is around the 61.8% fib level, followed by the last swing high of 0.7911.
If the AUDUSD pair moves lower from the current levels, then the 200 hour MA might come into play. Any further losses might discourage the Aussie dollar sellers moving ahead.
Overall, one might consider buying dips around the 200 hour MA as long as it is trading above the same.