[COLOR=#000000][FONT=Times New Roman][FONT=Arial][B]The rate hike by the RBA fueled the Aussie’s engine for further gains. These gains came to halt at the 0.8950 resistance line.[/B]
The surprising decision by Glenn Stevens on Tuesday morning sent the Aussie above last week’s peaks. Australia was the first country in the West to raise interest rates. They went from 3% to 3.25%, making their high rate even higher.
At first, AUD/USD went up 0.8870, where it stalled for many hours. It then continued the climb the steady climb upwards, trading between 0.8870 to 0.8900.
This morning, it made another move up. The Aussie rose up to 0.8950, which was the support line last year, temporarily stopping AUD/USD from falling during the height of crisis. I’ve mentioned this resistance line in the [URL="http://www.forexcrunch.com/category/forex-weekly-outlook/aud-usd-outlook/"][B]AUD/USD Outlook[/B][/URL].
[COLOR=#000000][FONT=Times New Roman][FONT=Arial]Upon reaching 0.8950, the Aussie fell back very fast, now trading at 0.8880. It’s amazing to see how the resistance line worked in a very precise manner. I keep repeating this over and over again: [B][URL="http://www.forexcrunch.com/5-most-predictable-currency-pairs/"]AUD/USD is the most predictable currency pair[/URL][/B].
[B]What lies ahead?[/B]
[B]Read the rest of the entry on [URL="http://www.forexcrunch.com/audusd-bounced-at-resistance/"]Forex Crunch[/URL].
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