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AUDUSD : Will the Pair Continue to Surge or Pause its Gains ?

(AUDUSD : 4 hour Chart)

AUDUSD is surging today in response to the Reserve Bank of Australia interest rate decision. On the 4 hour chart, the pair was consolidating within an ascending triangle and broke out from the resistance at .9441 confirming the bullish trend. This resistance at .9441 will now be acting as support for the pair. The Reserve Bank of Australia left its Benchmark Interest Rate unchanged at a record low 2.5%. Also RBA Governor Glenn Stevens said that Australian Dollar is offering less assistance to the balanced growth in economy than it should because of it higher value. Another report which might have boosted the demand for Australian Dollar is the China’s Manufacturing PMI rose to six month high of 51 in June in line with the economist’s expectation. Growth in China help boost the Australian economy also as China is Australia’s biggest export partner.

(AUDUSD : Weekly Chart)

On the Weekly Chart, we can see that the pair broke above the key resistance level and now surging towards the next resistance level at .9527.The 50 day SMA seems like providing support to the pair and contracting towards the 100 day SMA. If it continues to contract towards 100 day SMA and crosses above it, it will give bullish confirmation. However if the 50 day SMA remains below the 100 day SMA, the gains will be limited for the pair and the pair will decline after finding resistance.