The Reserve Bank of Australia (RBA) kept the cash rate the same at 2.00% announced just yesterday. China’s slowdown is putting a damper on Australia activity especially with exports.
The hourly time frame currently allows for a trend trading strategy. I plotted a 60 period exponential moving average along with a 120 period simple moving average. The two combined creates an envelope to spot trend entry points along with the trend line.
Given the current hourly trend, I would be looking at another swing trade sell entry as price exhausts its uptick. Going by what has happened previously, the optimized entry would depend on the price behavior near the possible support turned resistance zone provided that it holds up. It would also be based off the the trend line or either of the two moving averages. While I personally favor the light dodger blue 60 period exponential moving average, the 120 period navy blue simple moving average is a better representation of the dynamic resistance price reacts to.
I would currently put this pair on watch as further devaluation is expected despite keeping the RBA keeping the cash rate the same. I don’t usually rely on indicators, but this price behavior calls for a different strategy to trade with.