The pair is unable to sustain a break above the 200-day moving average
The RBA decision left little to be desired, but buyers tried another run at the highs for the day after the announcement. The pair crept up to 0.7793, but ultimately fell back down now to 0.7786.
The resistance level being tested now is the 200-day MA (blue line) at 0.7790. It was one which the pair tried to break above earlier in the day as well as you can see from the 5 mins chart:
And from there, we can see a double top pattern being formed in the near-term. The dollar is on the backfoot against the major currency bloc so far today, and that's helping to give the pair a bit of a lift.
The aussie on the other hand is the strongest performing major currency so far buoyed by improved risk sentiment which started with US equities overnight that spilled over to Asian equities as well today.
A break above the 200-day MA would open up the way for buyers to test the 50.0 retracement level @ 0.7819. And after three days of hovering near the lows at the 61.8 retracement level, it's a good platform to build on especially when the pair is trading higher despite the current account balance and retail sales data today which were a little disappointing.
