The RBA did the expected and left monetary policy unchanged following its latest meeting, and upgraded the language on its outlook for employment in the statement, noting unemployment should “decline gradually over time” while saying that it expects a “gradual further increase in underlying inflation” as the economy strengthens.
AUDUSD rallied to an eight-day high of 0.7556 in the wake of the statement, since ebbing to the 0.7530 area. The 0.7530 level is below the upper Bollinger Bands in the 4-hour chart. Hence by considering also that the pair moved in a downward channel since March 20th, a SHORT position was taken with entry at 0.7529. In the 4 hour- chart, RSI is at 58 sloping down, while MACD is negative since March 20th. The Fibonacci Channel which seems to fully confirm the particular trend, was used for setting Support level at 0.7570. Target 1 was set at 0.7490 and Target 2 at 0.7460.
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