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AUDUSD Tests Uptrend Line Support after a Noticeable Retracement

This early morning the RBA (Reserve Bank of Australia) announced that the interest rates remain unchanged at record low of 1.5%, in line with expectations, as the RBA expects no further QE in other major economies.

The RBA implied that in the short term there won’t be a further rate cut, the rates will likely remain at the current level.

The RBA expected a 3% annual economic growth over the next couple of years. At present the inflation is still lower than its 2% target, yet the RBA expects the inflation would reach the target this year.

After the announcement, ASX 200 index fell by 0.12%.

On the 4 hourly chart, AUDUSD has retraced more than 70 points with a long bearish candle, as it was trading below the long term major resistance level at 0.7700, also because of the strengthening of the dollar.

At present, the price still holds above the short term major uptrend line support. Yet the pressure above the level 0.7680 is heavy.

On the daily chart, the Stochastic Oscillator is crossing over from above, suggesting a further retracement.

The resistance level is at 0.7630, followed by 0.7650 and 0.7680.
The support line is at 0.7600, followed by 0.7580 and 0.7560.

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