AUDUSD trades higher today ahead of RBA decision, but approaches key technical resistance

The AUD is the strongest of the major currencies today and the AUDUSD is one of the big gainers with a rise of 1.23%. The gains come after declines on Thursday and Friday of last week. They also come ahead of the Reserve Bank of Australia’s interest rate decision on Tuesday. The expectations are for a 25 basis point hike.

Technically, the move is took the price more toward the overhead moving average levels including the 200-day moving average and 100 are moving average (green step line and smooth blue line) which are both at 0.67284. Above those MAs, traders will run into the 200-hour moving average (green smooth line) and 50% retracement of the move up from the June 29 low. Both those levels come in at 0.6744.

Those levels should slow gains today as traders take profit, and prepare for the interest rate decision and comments from the RBA.

On the downside, the 61.8% retracement of the move up from the June 29 low comes in at 0.6709, and below that the 100-day moving average of 0.66925 would be targeted.

This article was written by Greg Michalowski at Source