Comments suggest the door remains open
Rates were unchanged but the RBA suggests that further easing may be appropriate "over the period ahead". The AUDUSD has rallied higher and traded near the 100 and 200 hour. The scenario is not a full bullish one for the pair as the central bank does keep the door open for a cut down the road. As a result, I would expect choppy trading with two way price action.
Looking at the hourly chart, the 0.78485 was a high swing area over the last month or so of trading. There were looks above this level - the most recent in last weeks trading (see red areas in the chart above). However, those pushes failed. The high after the rate announcement has taken the price to a high of 0.73389 - above the 100 hour MA at the 0.78247 but below the 0.7848 level.
On the downside, the midpoint of the days range is at the 0.7794 level currently (see chart below). The correction has found support buyers against this level on the first test (low reached 0.7795 - see 5 minute chart below).
It looks like the technical battle is between the 100 hour MA above (blue line in the chart above) at the 0.7824 level and the 50% of the day's trading range on the downside at 0.7794. With the low to high trading range at about 88 pips and the average at 90 pips over the last 22 trading days, it may be that with no change in rates and the door remaining open for a further ease, that the range is set, with the market happily trading within the aforementioned high and low extremes - at least for the time being. Eventually, there will be a break, but it might have to wait for another catalyst.
