The Reserve Bank of Australia is once again expected to leave the cash rate unchanged at a record low of 2.5%. The market is very interested in what the RBA has to say about the Australian dollar, given that at the current levels, the exchange rate is higher than the level back in December 2013, when the RBA described it as "uncomfortably high." The Aussie is currently trading around $0.9266, close to the highs of this year.

Technical view

Weekly basis-

AUD/USD is trading at 0.9267 in Asia. The pair is trying to cross above the purple line. For bulls, you can enter longs only above the purple line (0.9280 likely). On the down side the key level is at 0.92537. For hourly trading perspective, the pair will become weak below the 0.92537 level. Below the key level, it will travel towards 0.9234, 0.92, 0.916, and 0.9066 levels. In the H4 chart, RSI is not favoring bulls. So, its better to take longs once it breaks above the purple line or wait for a correction.

On the upside, once the pair breaks and closes one candle above the purple line, the bulls will become active again and they will push the pair towards 0.9334, 0.9450 levels.

Positional basis-

The pair has given an upside break out at the level of 0.9154 and crossed the 200EMA level. Due to the overbought conditions in the daily charts, the pair is struggling to cross the previous high at 0.9294, and we can expect the upside targets to be postponed for a couple of days. If any positive news favors the pair, then we will see a huge up move towards the levels of 0.9540 and 0.9570. In our previous reports, we gave a buy call at 0.9154 for targets at 0.926 and 0.9575. On the down side, support exists at 0.92367 (200EMA), which is a crucial level for the bulls to hold. A move below this will make the pair weak and it will correct up to 0.9145 and more in coming days.