The Aussie continues to trade below the downward trendline that connects the lower highs starting from January’s high. Only a break above this important trendline can suggest a shift in the trend direction or at least can signal a correction. On the upside, the first area of interest is the resistance level 0.7345, but the most important level is the big psychological number 0.7500.
The stochastic indicator doesn’t show any extreme reading, so no major reversal should be expected. On the downside we can note the swing low established at 0.7200. A break below this level can open the downside more and the downtrend can resume. The RBA is not expected to change its current monetary policy anytime soon. The risks for the Aussie can come from the trade war between the US and China. But for now, our expectation is for a more technical driven market.
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