FxWirePro: AUD/USD pops post RBA rate decision, break below 20-DMA to see further weakness

AUD/USD chart - Trading View 

• AUD/USD jumped 25 pips after RBA's interest rate decision, but immediately reversed gains. 
   
• The Reserve Bank of Australia (RBA) held its monetary policy unchanged with an official cash rate of 1.5%. 
   
• The Aussie edged higher as a response, but immediately reversed gains possibly in response to RBA's change in language on the labor market and its impact on wage growth.
   
• The RBA said the continued improvement in the labor market "is expected" to lift wages over time (prior meeting "a sustained labor market strength "should" lift wages".
   
• The bank also said that downside risks arising from the external sector have increased and took note of the slowdown in household spending.
   
• The pair could extend the decline ahead of the pre-election budget (due later today), which is expected to include tax cuts and cash handouts. 
   
• Major trend in the pair is bearish. Break below 20-DMA  (0.7083) will see resumption of weakness.

Support levels - 0.7083 (20-DMA), 0.7054, 0.70

Resistance levels - 0.7096 (21-EMA), 0.7115 (55-EMA), 0.7153 (110-EMA)

Recommendation: Stay short below 20-DMA, target 0.70

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.