AUD/USD Continues Upside Momentum after RBA

AUD/USD (daily chart as of February 18, 2014) touched a one-month high of 0.9080 on RBA’s continued hawkish stance. The Reserve Bank of Australia signaled “a period of stability of in interest rates” in its last meeting, which raised expectations of the end of current easing cycle. Note that the Aussie has broken out above the daily EMA 50 (bold blue moving average line on chart) and has managed to stay above it for about two weeks.

Take a closer look at how price acted against the daily EMA 50, shown on chart in pink rectangles. The daily EMA 50 served as resistance at arrow 1, 2 and 3, while it served as support at arrow 4 and 5. Current price is under pressure below the 0.9085 mark, which is the January 13 high and also close to a short-term resistance line (red trend line on chart). The pair needs to clear the resistance barriers for more upside momentum.

Support levels below:
1st support: daily EMA 50
2nd support: 0.8888 (January 22 high)
3rd support: 0.8825 (January 28 high)

Resistance levels above:
1st resistance: 0.9085 (January 13 high)
2nd resistance: 0.9170 (multiple highs)
3rd resistance: 0.9270 (November 12, 2013 low)