The antipodean central bank left the cash rate unchanged at 1.50% for the 13th straight month, as expected, while the governor’s statement was somewhat mixed in tone, though the main takeaways were dovish leaning, including an acknowledgement of signs of slowing in the property market and a jawboning about the high exchange rate (that, if sustained, would lead to slower economic growth).
EURAUD dove to a 1.4902 low on the RBA policy announcement and statement. The pair is traded below the 1.5000 level for a third consecutive day, while it is consolidated on the 20-Day MA, since yesterday. In the 4-hour chart, EURAUD fail to break above the 20-period MA, and hence it remained on the lower Bollinger Bands pattern since August 31. Therefore a SHORT intraday position was taken, which was triggered by a Hanging Man Candle, noticed in the morning . Meanwhile, the 20-period MA crossed yesterday the 50-period MA, indicating tha weakness of the pair is likely to continue. The RSI id at 40 sloping towards oversold terittory . The entry was taken at 1.4921, with Targets at 1.4860 and 1.4820, which are the 200-period SMA and the 50.0 Fibonacci level respectively. Support is at near 50-period MA, i.e. 1.5000.
The European calendar has the final reading of the Eurozone services PMI in a while, which expected to stay unchanged from Q1 and therefore EU growth expected to continue.
Click here to access the HotForex Economic calendar.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.