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Forex pairs in this Article » EUR/USD (Moscow) - AUD/USD is squeezed in the narrow range as the bulls cannot decide whether they should drive the pair higher, above the resistance of 0.8870

AUD/USD consolidating gains

AUD trading is all about the CPI data today. The reaction to higher than expected numbers was really impressive as the AUD/USD gained nearly 100 pips within half an hour, smashed the resistance of 0.8850 and stalled at 0.8860. Currently the pair is consolidating within a pretty tight range limited by 0.8870 on the upside and 0.8850 on the downside, as the traders mulls over the data and the possible RBA reaction to it. The Central Bank was believed to keep the rates unchanged for a prolonged period of time, or even cut it as the economy is slowing down. Now it is not that obvious any more. During European and American sessions, the AUD/USD will be influenced by general US Dollar movements and risk sentiments. Once the resistance of 0.8870 is broken, the bulls will aim at 0.8900, further upside may be limited without additional strong catalysts. The downside is considered to be the line of least resistance at this point. Break below 0.8850, will return us to the support of 0.8800.

What are today’s key AUD/USD levels?

Today's central pivot point can be found at 0.8807, with support below at 0.8776, 0.8742 and 0.8711, with resistance above at 0.8872, and 0.8906 Hourly Moving Averages are mostly bullish, with the 200SMA at 0.8888 and the daily 20EMA at 0.8906. Hourly RSI is neutral at 70.87.
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