The main focus overnight was in Australia with the RBA deciding to hold the current cash rate at 2.25%, with no cut. This decision was against the backdrop of declining commodity prices and a slowdown in China with many expecting the rate to be cut to 2.00%. As a result the Aussie dollar strengthened on the news against many of the major currencies, with another nice move on the EUR/AUD on the 15 minute chart.
The Quantum accumulation and distribution indicator initially defined the support and resistance region with the 1.4360 being the key level of support and a region that had been tested on several occasions prior to the news. The bearish sentiment was confirmed with the trend monitor to the bottom of the chart which continues to remain bearish in this timeframe with the move lower accompanied by high volume and confirming the short term bearish trend. To the left of the chart and the Ninjatrader currency strength indicator, the euro (the yellow line) is continuing to move deeper towards the oversold region on the indicator, whilst the Aussie dollar (the blue line) is now approaching the overbought area in the 60 minute timeframe. The Quantum currency matrix is confirming the weakness of the EUR/AUD at the bottom of the currency ladder, and also reflecting the universal buying of the Aussie dollar in this timeframe in other currency pairs.
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