07, November 2016

AUD/USD (a 4-hour chart)

General overview

The Aussie weakened right after the RBA decision to keep Inflation Expectations around 1.5-2.5%. The Australian Bureau of Statistics expects to keep inflation on low levels for a while, planning to rise it lately.

Current situation

The AUD/USD remained under pressure around 0.7675, bouncing from the level on any attempt to the upside. The level seems to be well defended by sellers who tried to push the price lower at the beginning of the New York session. The AUD sharply dropped and tested 0.7650, however, this move did not have a leg, the price returned to the 0.7675 region. The pair broke the 50-EMA and tested the 100-EMA in the 1 hours chart. The 100-EMA rejected the price above the 50-EMA. The moving averages maintained their bullish slope in the same chart. The resistance is at 0.7675, the support can be found at 0.7650.

MACD decreased which indicates the buyers’ positions weakening. The RSI indicator is near overvalued territory, favoring a new move lower.

Trading recommendations

If bears take over the market the price will decline to 0.7650. A move lower will open the way for 0.7625 testing.