6 May 2014
AUD/USD initial reaction to RBA was shallow and short-lived
FXStreet (Moscow) - AUD/USD growth above 0.9300 after the RBA rate decision was short-lived, as the pair is back below this pivot
RBA failed to surprise
RBA kept the cash rate on hold at 2.5%, just at it was expected. RBA mentioned that AUD rate is too high by historical standards and effectively promised to keep rates unchanged for an extended period. AUD/USD bulls got inspired as RBA verbal intervention was not as aggressive as it was expected. The pair spiked from 0.9282 registered before the announcement and absorbed offers placed on approach to 0.9300, as a result the upside got traction and pushed Aussie to 0.9315. Protective stops spotted around this level with offers on approach to 0.9320 did not let Aussie bulls higher and triggered the downside correction
What are today’s key AUD/USD levels?
With spot trading at 0.9287, we can see next resistance ahead at 0.9288 (Weekly High), 0.9291 (Yesterday's High), 0.9293 (Daily Classic R1), 0.9294 (Daily High) and 0.9312 (Daily Classic R2).
To the downside we see next support at 0.9285 (Daily 20 SMA), 0.9277 (Hourly 20 EMA), 0.9275 (Hourly 100 SMA), 0.9274 (Daily Open) and 0.9273 (Hourly 200 SMA).
Looking to candlestick patterns, we can see a Doji formation on the 4-hour chart .
RBA failed to surprise
RBA kept the cash rate on hold at 2.5%, just at it was expected. RBA mentioned that AUD rate is too high by historical standards and effectively promised to keep rates unchanged for an extended period. AUD/USD bulls got inspired as RBA verbal intervention was not as aggressive as it was expected. The pair spiked from 0.9282 registered before the announcement and absorbed offers placed on approach to 0.9300, as a result the upside got traction and pushed Aussie to 0.9315. Protective stops spotted around this level with offers on approach to 0.9320 did not let Aussie bulls higher and triggered the downside correction
What are today’s key AUD/USD levels?
With spot trading at 0.9287, we can see next resistance ahead at 0.9288 (Weekly High), 0.9291 (Yesterday's High), 0.9293 (Daily Classic R1), 0.9294 (Daily High) and 0.9312 (Daily Classic R2).
To the downside we see next support at 0.9285 (Daily 20 SMA), 0.9277 (Hourly 20 EMA), 0.9275 (Hourly 100 SMA), 0.9274 (Daily Open) and 0.9273 (Hourly 200 SMA).
Looking to candlestick patterns, we can see a Doji formation on the 4-hour chart .