The Aussie dollar bounced after brief test of strong support provided by daily cloud top (0.7205) boosted by less dovish than expected RBA.
The central bank left interest rates unchanged as expected in the first meeting 2019, but sounded optimistic despite strong signals of global growth slowdown, decline in house prices in the biggest Australian cities and lower Q3 GDP that made a number of traders expecting a rate cut this year.
Immediate downside risk is sidelined for now, as fresh recovery is boosted by rising bullish momentum and improved post-RBA sentiment, however, a lot of work is required at the upside to neutralize bearish threats and attack again key 200SMA barrier (0.7291).
South-heading stochastic conflicts bullishly aligned momentum and daily MA’s, keeping the downside vulnerable.
The pair would look for firmer direction signal on break of either side, with plethora of supports between 0.7205 and 0.7175 (cloud top / 100/55/20/10SMA’s) marking the lower pivot and 200SMA acting as upper trigger.
Weak fundamentals could keep the Aussie under pressure and unable to clear important 0.7300 resistance zone and increase risk of eventual break below 0.7205/0.7175 pivots that would spark stronger bearish acceleration and expose next pivotal supports at 0.7070/00 (Fibo 38.2% of 0.6706/0.7295 / psychological support / Fibo 50%).
Res: 0.7264, 0.7291, 0.7355, 0.7393
Sup: 0.7205, 0.7195, 0.7175, 0.7144
