Analysis of AUDUSD Movement

Analysis of AUDUSD Movement

The AUDUSD pair has been experiencing a steady decline since early March, slipping below both its 50- and 200-day simple moving averages (SMAs). However, following dovish signals from the FOMC, the pair managed to reverse its downward trend and reclaim the SMAs. This recovery comes as a result of the market reacting positively to the FOMC’s stance, indicating an improvement in momentum indicators.

If the current advance in AUDUSD continues, the price could potentially test the March peak of 0.6666. Further upside movement could see resistance levels at 0.6689 and 0.6817, with a potential target at the December 2023 high of 0.6870. However, the pair would need to surpass these levels to validate a bullish trend in the short term.

On the flip side, bearish actions could push the price lower towards the recent support level of 0.6594, which may act as a barrier for further declines. Breaking below this level could open the door for a test of 0.6525, an area that has shown both support and resistance in recent months. Additionally, the point of 0.6503 could serve as a key level to watch for potential downward movements.

The recent movement in AUDUSD showcases a temporary halt to the downward trend, allowing the pair to reclaim its SMAs. However, for a more bullish outlook in the short term, it would be crucial for the pair to surpass the March high of 0.6666. Traders and investors should closely monitor the price action around key resistance and support levels to gauge the future direction of AUDUSD.

Technical Analysis

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