The surge, which was caused by the Reserve Bank of Australia rate statement, eventually broke previous high levels, the 200-hour simple moving average, the channel down pattern and the weekly R1 simple moving average. Namely, all resistance was broken by the adjustment to the news about the future of the monetary policy of the Australian central bank.
On Wednesday morning, the pair retraced back down and used the weekly R1 simple pivot point at 0.7119 as support. Meanwhile, the pair had no resistance as high as the November 30 and December 1 high levels near 0.7170.
In the case that the rate continues to surge, it would have to face the previous high levels at 0.7170/0.7173. Above the high level zone, the 0.7200 might provide resistance, before the pair reaches the weekly R2 simple pivot point at 0.7236.
However, a decline of the Australian Dollar against the US Dollar might look for support in the weekly R1 simple pivot point at 0.7119. Afterwards, the 200-hour simple moving average at 0.7100 might act as support.
