Despite modest increases near 0.6770 during the mid-Asian session on Wednesday. AUDUSD finds it difficult to maintain the recent upward trend.
The Aussie pair does so while defending the previous day’s upside break of a now-supporting. Downward-sloping resistance line from February. And the 200-day Exponential Moving Average (EMA). Bulls have recently been encouraged by the market’s cautious attitude. Ahead of US Federal Reserve (Fed) pronouncements.
AUDUSD Technical Outlook
It should be noticed that the 50% Fibonacci retracement level and the overbought RSI conditions. The AUDUSD pair’s upside is also constrained by the quote’s February-May downside. At 0.6810, which was swiftly followed by the prior monthly peak, near 0.6820.
So long as it trades between the resistance-turned-support and the previous monthly high, which are respectively around 0.6730 and 0.6820, the Aussie pair will remain unimportant for momentum traders.
The AUDUSD pair has the potential to breach the 0.6730 support level if the Fed follows market expectations and makes a hawkish stop, which would then allow for a southward move towards the 23.6% Fibonacci retracement level, or 0.6620. peaks of about 0.7030.
But before the psychological magnet of 0.7000 is reached, the 61.8% Fibonacci retracement line near 0.6890, commonly known as the golden ratio, will act as a check on the AUDUSD bulls’ ascent to the north.
The AUDUSD price may move past the 0.6820 barrier as a result of the US central bank’s inability to appease the policy hawks, which is mostly attributable to the recent decline in US inflation. The bulls will be able to strive for mid-February thanks to the same.
