After the RBA announced that it would leave the interest rate untouched at 3.5% the AUD/USD spiked to 1.0602, the highest it has been against the USD since March of this year, before pulling back and printing a Pin Bar Reversal on the 1 hour chart off of the Daily R1 at 1.0590. This could mean that the expected correction is about to happen, or that traders were either taking profit or got gun shy and now price will work to push higher and fill the wick. There is still some room for the pair to run higher, possibly up to 1.0645 where the Monthly R1 sits as well as several weekly opens & closes that have created a pretty tough ceiling to break through. An as yet unconfirmed trend line from the Weekly Chart also sits above, intersecting with the Weekly R2 at 1.06678 and is a juicy target for the Bulls. The line is considered unconfirmed because there have as yet only been 2 touches in the descending pattern, at 1.10796 and 1.08555. The trouble with trend-lines is that they are discretionary, and everyone draws them a little different. That said, when they intersect with well established historical S/R levels they are an excellent confirmation tool. The Weekly RSI has pushed well into the 'Overbought' territory however and could indicate that the Bears are about to take some of the steam out of the Bulls. If the pair reverses and the Bears take over, there is significant support below at 1.0524 & 1.04689 which also ties in with July's high at 1.05378 which will now act as support. Most traders feel that a correction for this pair is looming, and that might be the case soon, but for now the chart is still very bullish and it is quite possible that the trend the pair has been in will continue after investors soak in the unchanged rate.
Happy Trading!