Aussie making a pullback to 0.6570 support after RBA rate decision [Video]

Gregor Horvat Wavetraders

Markets are stable, with stocks being sideways since yesterday while dollar saw some recovery in response to higher US yeilds. We however think that's a temporary corrective rally for the USD before downtrend may resume later this week. Also, durign Asia, RBA decided to leave rates at 4.35%. They noted that further tightening of monetary policy is required to ensure that inflation returns to target in a reasonable timeframe but it will depend on the data, and that expectations remain consistent with the inflation target. So as a result Aussie sold-off, but if USD is really just in a temporary corrective rise, then I think that Aussie can be moving into some interesting support. I see some nice a-b-c pullback here; a potential flat within uptrend. Important support for this week is now here at 0.6570.

Video covering plenty of major markets

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Author

Gregor Horvat

Wavetraders

Experience Grega is based in Slovenia and has been in the Forex market since 2003.

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