AUDUSD rose to 0.7118 early on Tuesday after the RBA held rates unchanged. Despite this rise above the Ichimoku cloud, the pair is still within a corrective pattern after the big decline from 0.8162 to 0.6906. Prices are testing the 23.6% Fibonacci retracement level of this downleg at 0.7206.
A further move higher would bring the 38.2% Fibonacci into focus. This level at 0.7388 is the upper range of the corrective pattern. A break above this would be needed in order to see a shift in the bias to a more bullish one.
Momentum is weak as the RSI is still below 50 and not quite into bullish territory. Looking at the bigger picture the bias remains neutral as the market has paused the downtrend. The sideways Ichimoku cloud is an indication of this consolidation pattern. If support fails at 0.6906, then a resumption of the downtrend would ensue.
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