AUDUSD takes the high road after the RBA rate cut

AUD keeps steaming higher despite the RBA rate cut

The mere 60 odd pip loss that came around the RBA cut was as simple a signal as we could get that this baby wasn't going down. I thought we would see 100 pips at the low end on a cut, and it didn't come close.

Yesterday I highlighted some decent looking levels both above and below and it looks like the topside could be where the next action is.

We've broken through the 0.7600 area once again, eclipsing yesterdays highs.

AUDUSD H4 chart

We'll see some resistance up around the June highs around 0.7640 and then we'll be into the area of resistance between 0.7660/80 I picked out yesterday.

The move looks very strong but as always, we let the price do the talking, not our expectation. It would ultimately take a break of 0.7700 before we start to think about the pair making a real break of the range and continuing the trend. If it does and we get confirmation, then we can look at going with that break.