AUD/USD: Australian Dollar Strengthens Ahead of RBA Desicion
The Australian dollar has been rising, gaining around 1.5% over the past three sessions against the U.S. dollar. The current bullish movement continues as the market awaits the Reserve Bank of Australia's (RBA) decision in the coming hours. The RBA is expected to cut interest rates by 25 basis points, bringing the new rate to 4.1%.
However, the market has already priced in this decision, as expectations for a rate cut have been consistent for several days. This has allowed upward momentum to persist, as any bearish reaction to the RBA's move may have already been absorbed into the price.
Additionally, as the trade war between the U.S. and China escalates, Australia's economic ties with China have strengthened, boosting confidence in the region and supporting a bullish outlook for the Australian dollar.
Breakout from Sideways Range
Until recently, AUD/USD had been trading within a key range, with resistance at 0.62923 and support at 0.61929. But the recent bullish move has broken through this resistance, leading to stronger buying pressure in the short term.
As long as price remains above the upper boundary of this range, the Australian dollar could maintain its upward momentum in the near term.
RSI Indicator: Overbought Signals?
Not everything is bullish, as the RSI indicator is now approaching 70, the overbought zone.
If the RSI remains above this level for the next few sessions, it could signal an imbalance between buyers and sellers, as well as the potential for short-term selling corrections.
Key Levels to Watch:
By Julian Pineda, CFA – Market Analyst
However, the market has already priced in this decision, as expectations for a rate cut have been consistent for several days. This has allowed upward momentum to persist, as any bearish reaction to the RBA's move may have already been absorbed into the price.
Additionally, as the trade war between the U.S. and China escalates, Australia's economic ties with China have strengthened, boosting confidence in the region and supporting a bullish outlook for the Australian dollar.
Breakout from Sideways Range
Until recently, AUD/USD had been trading within a key range, with resistance at 0.62923 and support at 0.61929. But the recent bullish move has broken through this resistance, leading to stronger buying pressure in the short term.
As long as price remains above the upper boundary of this range, the Australian dollar could maintain its upward momentum in the near term.
RSI Indicator: Overbought Signals?
Not everything is bullish, as the RSI indicator is now approaching 70, the overbought zone.
If the RSI remains above this level for the next few sessions, it could signal an imbalance between buyers and sellers, as well as the potential for short-term selling corrections.
Key Levels to Watch:
- 0.61929 – Distant Support: Lower boundary of the previous range.
Frequent price oscillations at this level could revive the previous downtrend seen since September 2024. - 0.62923 – Key Support: Aligns with the Ichimoku Cloud barrier and the 50-period Simple Moving Average (SMA).
A tentative level where short-term bearish corrections could occur. - 0.64323 – Major Resistance: Corresponds to the 38.2% Fibonacci retracement level.
If the bullish bias pushes price toward this level, it could signal the beginning of a stronger uptrend in the short term.
By Julian Pineda, CFA – Market Analyst
כתב ויתור
המידע והפרסומים אינם אמורים להיות, ואינם מהווים, עצות פיננסיות, השקעות, מסחר או סוגים אחרים של עצות או המלצות שסופקו או מאושרים על ידי TradingView. קרא עוד בתנאים וההגבלות.
כתב ויתור
המידע והפרסומים אינם אמורים להיות, ואינם מהווים, עצות פיננסיות, השקעות, מסחר או סוגים אחרים של עצות או המלצות שסופקו או מאושרים על ידי TradingView. קרא עוד בתנאים וההגבלות.