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Australian Dollar May Break To The Upside on RBA Decision
Tuesday, 02 December 2008 03:53:01 GMT  |  Luis Gil, DailyFX.com
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Traders looking at the short-term 10-minute AUD/USD chart have probably noticed price action swinging in a well defined bearish channel. Technical tools like the stochastic oscillator have also called the tops and bottoms quite nicely. Currently we are seeing the oscillator picking yet another top on the pair, but will this “top” indeed see a pullback?

12-02-08 audusd

Fundamental analysis would be weary of such a thought. While the Reserve Bank of Australia’s actions alone may lend credence to a further devaluation of the currency, one may want to think twice. The policy statement accompanying the bank’s 100bp rate cut signaled that the committee may be done cutting rates for now. If the bank follows through on its statement, the Australian Dollar could break out to the upside of this channel.

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