AUD/USD: upside on 4hr looks constructive – FXStreet

By FXStreet FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the Australian dollar ends the day with gains against its American rival, with the pair however, far from its daily high of 0.7218 achieved during the past Asian session after the RBA meeting outcome.

Key Quotes:

“The Australian Central Bank said that that economic conditions had “firmed a little” in the past few months, whilst maintaining its main benchmark unchanged at 2.0%. The pair fell down to 0.7150 mid American session, but quickly recovered ground after tepid US Factory Orders data, now capped by the 0.7200 figure.”

“The technical picture is mildly positive, as the 1 hour chart shows that the price is above a bullish 20 SMA, whilst the RSI indicator holds around 60. The Momentum indicator however, in the same chart, heads lower below the 100 level, limiting the upside at the time being.

In the 4 hours chart, the upside seems more constructive, as the intraday decline was contained by a bullish 20 SMA, whilst the technical indicators hold above their mid-lines, yet with a limited upward tone at the time being.”
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Source:: FX Street