As the Reserve Bank of Australia decided to suspend its efforts to raise interest rates, the euro and the pound are looking to make a breakout against the dollar, while the Australian dollar is keeping most of its gains.
The EUR/USD rate has returned to $1.09
The price has regained its upward momentum after climbing back up from Monday’s lows, which is denoted by the EUR/USD pair.
The $1.10 level is still the next important level to keep an eye on, and if it is broken, the $1.116 level, which was reached in March of last year, will be the next longer-term goal to aim for. The price has rebounded as it once again found support around $1.054, giving buyers control of the situation once again.
In order for a near-term bearish outlook to be suggested by sellers, there will need to be a move below $1.052 in price.
AUD/USD holds gains as RBA pauses
Despite the fact that the Reserve Bank of Australia (RBA) has chosen to hold off on raising interest rates, the AUD/USD exchange rate has finally begun to rise, joining the risk-on trend that has been taking place across other markets. This development has not been enough to discourage investors.
The comeback to levels above the 200-day simple moving average This currently puts the price on track to challenge the 100-day and 50-day simple moving averages (SMAs), and if any of these can be broken, then the bullish view will receive additional support. This would then clear the path to the $0.69 and $0.70 levels, both of which have been significant places of resistance in recent price action.
In order to resurrect the bearish picture, sellers will need to drive the price lower below $0.665 once again.
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