AUD/USD is trading in the red after failing to approach and reach the former highs. It's located at 0.7735 below 0.7741 weekly pivot point.
As you already know, the RBA maintained its monetary policy on hold in today's meeting. The Cash Rate was left unchanged at 0.10% as expected. AUD/USD is still trapped within a narrow range in the short term.
The greenback has decreased a little yesterday as the US ISM Manufacturing PMI dropped unexpectedly from 64.7 to 60.7, even if the specialists have expected to see an increase to 65.0.
Today, the US is to release its Trade Balance and the Factory Orders figures. Poor data could force the greenback to decline again.
AUD/USD Bearish Post RBA!
AUD/USD has increased as expected after escaping from the major Falling Wedge pattern. It has found strong resistance at 0.7815 level and now is moving sideways above the descending pitchfork's median line (ML).
The bias remains bullish as long as it stays above the median line (ML). Only a valid breakdown below the median line and from the current range, new lower lows, could signal a bearish reversal.
A new false breakdown through the median line (ML) or a major bullish engulfing could signal a new leg higher. It's pressuring the weekly pivot 0.7741 at the time of writing. Failing to stabilize below it could bring a new upside momentum sooner.
Forecast!
AUD/USD is bullish as long as it stays above the median line (ML). A new false breakdown or any other reversal pattern around it could bring a new long opportunity.
We'll have a good long opportunity also if the rate makes a valid breakout above 0.7815 level.
Selling AUD/USD could be indicated by a bearish closure below 0.7695 former low with a potential downside target at S2 (0.7619).
The material has been provided by InstaForex Company - www.instaforex.com