AUDUSD buyers remain in control after failing to move lower after RBA cut yesterday

The RBA cut rates by 25 basis points yesterday, marking its first rate cut in over four years and following 10 consecutive months of unchanged policy. Despite the expected decision, traders did not push AUDUSD lower. Instead, buyers stepped in at the 0.6334 level, which had previously acted as both a floor and ceiling since December before breaking to the upside last week. Holding above this level keeps buyers in control and maintains the bullish bias.

On the upside, the next key resistance comes at 0.6398, followed by the 38.2% Fibonacci retracement of the September-February decline at 0.6414. A break above these levels would shift momentum further in favor of buyers, with the falling 100-day moving average at 0.6431 serving as a critical longer-term target. Clearing this moving average would solidify bullish control in the short-to-medium term.

Conversely, a move back below 0.6334 would likely disappoint buyers and shift sentiment back toward the downside. In this case, traders would look toward a key swing area between 0.6287 and 0.6302 as the next potential support zone. A break below this range could increase bearish momentum and put further downside pressure on the pair.

Technical Levels in Play:

• Support Levels:

  • Key floor level → 0.6334 (short-term pivot)
  • Swing area → 0.6287 – 0.6302

• Resistance Levels:

  • Next upside target → 0.6398
  • 38.2% Fibonacci retracement → 0.6414
  • 100-day moving average → 0.6431

• Key Trading Signals:

  • Above 0.6334 → Buyers in control, targeting 0.6398, 0.6414, and 0.6431.
  • Below 0.6334 → Sellers take control, with focus on 0.6287 – 0.6302.

This article was written by Greg Michalowski at www.forexlive.com.