RBA keeps rates unchanged. A dovish slant spurs on a AUDUSD drop.

The Reserve Bank of Australia kept rates unchanged at 4.35%. However, instead of being more hawkish, the central bank was perceived to be more dovish. That helped to send the AUDUSD lower.

Technically, the price broke below its 200-hour moving average (green line in the chart below) at 0.66089. The 200-day moving average gave traders some cause for pause at 0.65783, but buyers gave up and have since pushed the price down toward the 38.2% retracement of the move up from the November 10 low at 0.65556. The 38.2% retracement has so far stalled the fall. A move below the moving average should open the door for further selling with a swing area between 0.6500 and 0.65229 as the next target area. Also within that area is a 50% midpoint of the move up from the November 10 low at 0.65141.

Conversely, if the 38.2% retracement does hold support (there are support buyers against that level with likely stops below the retracement level) getting back above the 200-day moving average of 0.65783 would give those dip buyers some comfort.

This article was written by Greg Michalowski at www.forexlive.com. Source