AUD/USD: bullish momentum slowing – FXStreet

By FXStreet FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the AUD/USD pair surged to its highest in 7-weeks, trading near the high set at 0.7335 in the American afternoon.

Key Quotes:

“The Aussie got a boost early Asia as the RBA decided to leave its monetary policy unchanged, giving a lift to the Aussie, as the Central Bank removed the previous reference to “at this meeting” signaling that rates will remain unchanged for some time now. Nevertheless, the Central Bank left doors open for a rate cut if needed, yet the more hawkish than-expected tone was enough for the Aussie to rise against the greenback, later weakened by poor US data.

Technically, the 1 hour chart shows that the price holds well above a bullish 20 SMA, whilst the technical indicators consolidate in overbought territory, with no signs of turning lower.

In the 4 hours chart, the technical readings are losing their upward momentum in overbought territory, but also fail to suggest a bearish corrective move, supporting a continued advance, moreover if the price holds now above the 0.7300 level. “
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Source:: FX Street