05, October 2016

AUD/USD (a 4-hour chart)

General overview

The Aussie softened when the RBA the left the rate unchanged on Tuesday.

Current situation

The AUD/USD retreated from the 3-day highs on Tuesday. The overall outlook remains bullish and the current pullback is seen as consolidation. The price is approaching the level 0.7650. The moving averages kept heading higher in the 4 hours chart. The resistance is at 0.7700, the support stands at 0.7650.

MACD remained at the same level which confirms the strength of buyers. RSI remained within the overbought area.

Trading recommendations

A bullish continuation through 0.7700 should lead to a continued slide, with 0.7750 as the first probable target. A close below 0.7650 could extend the current weakening towards 0.7630.