AUD/USD has momentum into RBA
The Australian dollar is on a five-day winning streak ahead of the Reserve Bank of Australia decision, despite the chance of a rate cut.
AUD/USD touched a 10-week high of 0.7648 minutes before the Brexit results then plunged down to 0.7306 in the aftermath. Since then, it's been in a slow recovery, including a 40-pip rally on Monday to 0.7541.
A bullish signal is that the gain on Monday exceeded the 61.8% retracement of the Brexit fall.
A bearish signal is the crossover of the 55-day moving average below the 100-dma last week.
The final argument for sideways trading is the wedge that's formed through most of this year. The modest uptrend from the January lows has been met by selling at 0.7800 and against at 0.7600.
The RBA decision is at 0430 GMT.
