1 Jun 2015

POTANTIAL TRADE ON RBA RATE DECISION

AUD/USD H4

The rate has started the week with a sideways consolidation pattern (possible bear flag), and it's likely we may see a break on RBA's rate decision tonight.

Although the last meeting stated we are unlikely to see a further rate cuts (currently 2%), which in turn helped aussie mount a small recovery, the recent data still show weakness in the economy.

In case of a downside break below 0.7620, the bear flag scenario should trigger a move towards the year-to-date low, which is also a 100% breakout target at 0.7525. A daily close below this level is needed to establish any longer term positions though.

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