Chart - Courtesy Trading View
AUD/USD was trading 0.67% higher on the day at 0.6928 at around 05:15 GMT, extends bounce off 55-EMA.
The pair has snapped a three day bearish streak, Aussie soars after the Reserve Bank of Australia (RBA) raised interest rate by 25 bps as expected.
RBA matches the market forecasts, but the central bank failed to offer any major hawkish clues which keeps upside limited.
The central bank's statements expecting softer inflation moving forward and souring sentiment amid fears of escalating US-China tussles over the balloon shooting keep lid on gains.
Later the day, the speech from Fed chair Jerome Powell will be keenly watched for cues about the likely monetary policy action ahead.
Technical Analysis:
- AUD/USD has bounced off 55-EMA with Doji formation
- Bearish 5-DMA crossover on 20-DMA keeps bias lower
- MACD and ADX support downside
- Price action is above cloud and Chikou span is biased higher
Major Support Levels: 0.6864 (55-EMA), 0.6807 (200-DMA)
Major Resistance Levels: 0.6972 (21-EMA), 0.6989 (5-DMA)
Guidance: Pullback in the pair from multi-month highs has held support at 55-EMA, further weakness only on break below.
Doji at lows raises scope for further upside. Major trend is neutral. Price action is above 200-DMA. Watch out for retrace above 21-EMA for upside resumption.
