In addition to the outcome of the European central bank policy meeting awaited this week, the market first focused on the Australian central bank policy meeting today.
The Reserve Bank of Australia (RBA) also made a surprise move by raising interest rates to 50 basis points, higher than expectations of 25 basis points.
Interest rates rose to 0.85% from 0.35% previously, beating expectations to rise to 0.60%.
Following the results of the meeting, the Australian dollar has soared to record an increase in value, but is seen as failing to maintain that momentum.
On the price chart of the AUD/USD pair, scanning the previous movement, the price has displayed a bearish pattern after last week’s rise which reached the high of 0.72800 on Friday, failing to continue the higher climb.
Even continuing with the market's opening trade earlier this week on Monday yesterday, the rally only tested the 0.72300 zone which was a resistance for the price before continuing the decline.
The price movement also remains below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame which signals a bearish trend for the price.
Continuing on trading into the early Asian session this Tuesday morning, the price has declined testing the focus zone at 0.718000.
And after the results of the RBA meeting just now, the price has jumped around 80 pips reaching a high level around 0.72450 before falling back below the 0.72300 zone.
The price is back moving below the MA50 barrier level which is still giving a bearish signal and hovering in the 0.72000 zone continuing on trading at the beginning of the European session this afternoon.
If the lower decline continues, the price moves below the 0.71800 zone will follow to the lower level towards the RBS zone (resistance become support) at 0.71000.
Yet if the price manages to make the jump again, breaking the resistance at 0.72300 will push the price to retest the 0.72800 high reached at the end of last week.
Next, only then will the previous bullish trend be continued again for the price to continue to record the latest highs for the 7 -week trading period.
