Today an interest rate decision was published in Australia. As expected, the Reserve Bank of Australia left interest rates unchanged at the level of 1.5%. The latest data on production activity gives hope for the strengthening of the Australian dollar.
The powerful downward momentum of the pair weakened against the backdrop of rising energy prices. At the moment we expect a correction for our pair.
Looking at the chart, we see that the price is currently trying to overcome the resistance level and gain a foothold above the MA (28). If this scenario is confirmed, we expect an upward movement.
Technical indicators show weak signals for purchase at the moment. However, if we view the chart from the point of view of wave analysis, we can expect the formation of a second wave and a price hike to 0.9945.
If the price does not manage to gain a foothold above the moving average, then the price will again test the level of 0.9870. In this scenario, we expect an advance to the level of 0.9800.
