02, November 2016

AUD/USD (a 4-hour chart)

 General overview

The Aussie strengthened when the RBA kept its rate unchanged at 1.5% on Tuesday. The regulator also predicted the Australian economy to grow near potential over the next year.

Current situation

The Aussie rallied against the U.S. dollar on Tuesday. The price jumped from 0.7600 to 0.7675. After testing the level 0.7675 the upward momentum faded and the price rolled back. The price broke 0.7625 and 0.7650 on its way upwards. The 50, 100 and 200 EMAs are turning upwards in the 1 hour chart. The 50-EMA crossed the 100 and 200 EMAs upwards in the same chart. The resistance is at 0.7675, the support can be found at 0.7650.

The MACD histogram grew which indicates the buyers’ strength. RSI is within the overbought area.

Trading recommendations

The pair is heavily overbought. We expect some profit taking from bulls after the recent rally. The price may roll back to 0.7650.