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  • AUD has activated twin bullish cues with a big move to 0.7048.
  • AUD/USD bulls need a daily close above 0.70.

The status quo Reserve Bank of Australia (RBA) rate decision has put a strong bid under the Aussie dollar, lifting the AUD/USD pair above the 200-hour moving average (MA) resistance at 0.7023.

As of writing, the AUD/USD pair is trading at 0.7040, having clocked a session high of 0.7048 a few minutes before press time.

With the sharp move higher, the pair has also convincingly crossed the resistance of the trendline connecting April 17 and May 1 high.

While the pair has activated twin bullish cues with a rally to 0.7048, further gains may not be seen immediately, as the hourly chart relative strength index (RSI) is now reporting overbought conditions. Further, the 10-day MA is still trending south, indicating a bearish setup and is currently located at 0.7022.

That said, if the buyers fail to secure a daily close above 0.70, then the case for a deeper drop below the recent low of 0.6963 would strengthen.

Hourly chart

Trend: Intraday bullish

Pivot points