AUD/USD: Further upside potential
Despite the greater demand for higher yielding assets in the form of higher equity markets at the end of the past week, the aussie failed to break above the key resistance level seen at 1.0475. At 1.04157 at the time of writing, the jostling for position between the bulls and bears continues as the bears can’t seem to find enough collective momentum to pull the market lower. With the RSI well directed and below its overbought area on the 30 min chart, the AUS/USD looks set to challenge resistance at 1.0475. As long as the market remains supported by the rising trend line, there is no reason for the bulls to worry. In the alternative scenario, a break below key support area at 1.036 could delay the upside movement. The spotlight is on Tuesday’s rate-setting meeting of RBA. With December’s rate cut widely expected, another reduction at this point in time would be quite surprising
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