AUDUSD H4
There was limited follow through on the downside after the Aussie rate was cut by 0.25%, the AUDUSD initially fell 200 pips but the market is now back above levels seen pre rate cut. This is an indication that the market is heavily short Aussie and a large short covering rally could be just around the corner.
However there is an important 1:1 (Light blue) resistance at 0.78900 that could attract some interest from the bears, a break above this level and the momentum on the topside will pick up.
AUSUSD M5
Intraday players have been seen buying Aussie on dips with the recent 1:1 (Blue) attracting the smart money, if this level can continue to find good buying interest the stops above yesterdays high will likely come under attack.
* A 1:1 refers to a current correction being equal in length to a prior correction
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