The cards are falling the USDs way today
The RBA meeting minutes signaled the central bank still had scope to ease policy. That, along with some bearish technicals (see technical preview from yesterday) and stronger USD has turned the tide more to the downside for this pair as well today.
From a technical perspective, the 0.8030 "line in the sand" level - outlined in yesterday's post - held any rallies. From there it was a matter of getting below the next downside hurdles represented by upward sloping trendlines and the 100 bar moving average on the 4-hour chart (see chart above). Those levels came in around the 0.7950 level and all were taken out after the better US housing data got traders thinking the Fed may indeed be back in play. The price is currently trading at the days lows and below the 38.2% of the move up from the March 31 low.
The tide has turned more to the downside for the pair The 100 day MA at the 0.78499 and the 50% retracement of the same move higher at 0.7847 are the next major targets. As long as the price remains below the topside broken resistance levels, the bears remain in control.
