Throwing caution to the wind, the H4 Stochastics show signs of an overbought market as candlesticks show exhaustion at 0.88-0.885 range where the last support was broken during the week of 22 Sept 2014
Australian dollar trades back to October’s high at 0.882 as the RBA revealed no changes to the cash rate and expects to keep it low for the extended period. Targeting housing prices and keeping it accommodative and attractive, the RBA made no changes in commitment from its previous press release.
The IMF cut growth forecast for the world as the global outlook seems to have created a bubble in many markets boasting gains, with no spillover effect on the Australian dollar yesterday.
We may see a retracement of the bullish movement for the past two days, with support at 0.877 the closest sign of a continuation towards 0.89.