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FxWirePro: Aussie gains as RBA cut rates, faces resistance at 7-EMA

The Australian dollar surged, extending previous session gains as the central bank cut interest rates to record lows aimed at cushioning the economy from the impact of the coronavirus. The Reserve Bank of Australia cut t…

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FxWirePro: Aussie gains as RBA cut rates, faces resistance at 7-EMA
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  • The Australian dollar surged, extending previous session gains as the central bank cut interest rates to record lows aimed at cushioning the economy from the impact of the coronavirus. 
     
  • The Reserve Bank of Australia cut the cash rate a quarter-point to a record low of 0.5 percent after its monthly Board meeting and left the door open to further easing.
     
  • The Aussie was trading 0.4 percent up at 0.6560, having hit a low of 0.6433 on Friday, its lowest since March 2009. 
     
  • Technical indicators are bullish on hourly charts: RSI strong at 59, Stochs are at overbought levels and MACD supports upside.
     
  • Immediate resistance is located at 0.6585, a break above could take it near 0.6602.
     
  • On the downside, support is seen at 0.6497, a break below could drag it till 0.6481.
     

Recommendation: Good to buy on dips around 0.6542, with stop loss of 0.6524 and target price of 0.6585. 

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