Not surprisingly RBA decided to put rates on hold , leaving rates unchanged. During RBA monetary policy meeting it was concluded that the inflation forecast is consistent whereas low interest rates support both borrowing and spending. RBA statement caused just a small bounce in the pair effectively leaving the pair within the sideways range.
Technically last 10 days AUDUSD has been trading below 0.7200 and any rallies toward have been a chance to short it further as I have stated before. The pair shows hidden divergence and compression triangle shows a possible breakout soon. Hidden bearish divergence is telling us that the pair is ready to proceed down possibly testing 0.7070 and 0.7020. Anyway, for trend traders some pullback is required as R:R is significantly higher then. POC comes around 0.7205 spot and if 0.7230 stays strong , another good opportunity for short is there. Historical sellers, 50.0 fib, Divergence top all constitute a strong POC and upper trendline of the triangle will be adjusted then too for additional resistance.
AUDUSD is bearish targeting 0.7070, 0.7020 and 0.6990 but the decision should be about either going for a breakout trade or a classic pullback trend trade.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
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