AUDUSD is struggling to gain ground, hovering around 0.6555, up 0.16% on the day.
On Wednesday, the AUDUSD pair is trading around 0.6555. The headlines surrounding the US-China relationship support the current US Dollar buying inclination.
However, the US government aims to target those Chinese firms. That get more than half of their revenue from quantum technology and artificial intelligence (AI).
Moreover according to Bloomberg, US President Joe Biden is set to release an executive order on the ban this week. The Positive growth in the world’s two largest economies may help the China-proxy Australian Dollar (AUD) while acting as a headwind for the AUDUSD combination.
Technical Outlook
The four-hour chart shows that AUDUSD is trading below the 50- and 100-hour Exponential Moving Averages (EMAs), indicating that the pair’s path of least resistance is to the negative.
Moreover the main resistance level for the AUDUSD will be 0.6600, which represents the intersection of the upper limit of the Bollinger Band, the August 4 high, and the 50-hour EMA. If the latter is broken, the next upside stop will be at 0.6625 (July 28 low) on the way to 0.6650 (100-hour EMA). The additional upside filter is located at 0.6700 (a round number for the high of July 31).
On the other hand, the pair’s initial support level is 0.6500. Which represents the lower limit of the Bollinger Band, an August 3 low. And a psychological round mark.
Any intraday drop below the latter would reveal the next conflict level at 0.6460 (May 31 low). The next halt for the AUDUSD is at 0.6400. (The intersection of a psychological round figure and the November 2022 low).
It’s worth noting that the Relative Strength Index (RSI) is currently below 50. Posing a challenge to the pair’s immediate decline.
