FXstreet.com (Barcelona) - Australian Dollar has experienced a bearish reaction to the 25 b.p. rate hike approved by the RBA and the pair has dropped from 0.9095 high t0 0,8915 low lathough, at the moment of writing, the pair has returned to levels above 0.8945.
The pair is struggling to remain above 0.8945 support area, which defends 0.8902 level, according to Mohammed Isah, technical analyst at FXTechstrategy: Below the 0.8942 level will set the stage for a run at the 0.8902 level where its MT rising trendlineis located. A cap is expected there but on a failure of there, we could witness further declines towards its Oct 01'09 high at 0.8857 and then the 0.8676 level, its Oct 05'09 low.
On the upside, Isah points out to 0.9275 level to swift bias: On the upside, to avert its present downside threats, AUDUSD must break and maintain above the 0.9275 level, its Oct 26'09 high to signal a return to the 0.9327 level, its YTD high with a clean break above there resuming its MT uptrend and putting it in position to head further higher.