The Aussie managed to gain some ground after the RBA cut the rates but seemed to have closed the door on further ones.
Moving from the fundamentals to the technicals, what do we see on the charts? The team at SocGen notes an interesting pattern:
Here is their view, courtesy of eFXnews:
AUD/USD has formed a weekly shooting star near the level of 0.80/0.8020, which happens to be the 23.6% retracement from last year highs, notes SocGen.
“Monthly indicator is reintegrating within a multi month horizontal support suggesting the previous lows of 0.7590/60 as an important support,” SocGen adds.
“Definite close above 0.80/0.8020 will stretch the recovery towards 0.83, the lower limit of the weekly channel,” SocGen projects.
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