Following the outcome of the Australian central bank's policy meeting a moment ago, the Australian dollar was seen as not reacting significantly and moving slowly towards the opening of the European session.
The Reserve Bank of Australia (RBA) kept interest rates unchanged at a low of 0.10% as the market had expected.
On the price chart of the AUD/USD pair, the price moved downwards from the level of 0.76600 at the beginning of the Asian session to the level around 0.76300.
Although the RBA is seen delivering a dovish -tone statement and could push the Aussie dollar depreciating, the price on the AUD/USD chart is seen to be showing an increase to the 0.76500 level which is the price resistance zone since last week.
Prices moving above the Moving Average 50 (MA50) support level on the 1 -hour time frame are still signaling for a bullish trend, however will the price be able to continue rising after today’s RBA meeting?
If the price manages to continue the rise past the resistance zone of 0.76500-0.76700, the next rise will head to the latest high level around 0.77500.
The rise in prices will also be driven by the continued depreciation factor of the US dollar in a market influenced by the decline in US treasury yields.
Next, the price will continue rising to test the resistance level at 0.78300 thus recording the latest 3 -week high.
Yet if the price returns to decline and falls below the MA50 support level, investors need to be prepared for a lower price decline.
The support levels at 0.75700 and 0.75300 are among the price focus and have been tested in previous weeks.
