Trade Of The Day: RBA On Hold, Room For Further AUD Upside

AUDUSD – playing the correction

RBA meeting a non-event with consensus expectations met as rates remain on hold at 2.00%. With the RBA on the sidelines for now and commodities stabilizing there may be room for further upside corrective price action in the Aussie.

Technically, the rally off the retest of the .6900 lows breaks .71 resistance. Upside advance now set to test offers towards .7150 which will likely cap upside at the first attempt. While .7050 supports intraday downside reactions expect renewed upside pressure to target stops above .7150 en-route to .7300

Trade Idea

  • While we have daily bullish Order Flow, I am looking for a pullback to test pitchfork ascending lower parallel support towards .7050, leaning against the lower level of the ATR band on a closing basis. I am looking for price to test median line of the pitchfork and an equality upside corrective target at .7300

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