AUDUSD was trading higher today after the RBA’s 25 basis point rate cut yesterday lead to expectations that this would be the last cut. The aussie was trading higher at 0.7874 against the US dollar where it appears to have found resistance at the 38.2% of the Fibonacci retracement level of the upleg from the April 2 low of 0.7532 to the April 29 high of 0.8074.
Having moved back down into the Ichimoku cloud, AUDUSD could find its next support at the 50% Fibonacci retracement level at around 0.7805. A further fall below the 61.8% Fibonacci retracement level would indicate a possible downside shift but as the RSI is still above 50 and slightly rising, the near term bias is slightly bullish. The Tenkan-sen line crossing above the Kijun-sen line within the cloud in recent days reaffirms the weak bullish signal and AUDUSD would need to push back above the cloud for a stronger bullish bias.