AUD / USD price action is currently focused on key short-term levels
Yesterday’s bullish move was again capped by the 100 hour MA (red line) and that saw sellers regain control in the short term in a surge below the 200 hour MA (blue line) – where the price action continues to trade now.
There is minor support closer to 0.7160 and that has helped form a short term wedge in the pair and it is a technical pattern to consider over the next few sessions, especially with the anticipation of the talk from the Fed Chairman Powell on Thursday.
Either way, the confluence of key hourly moving averages @ 0.7186-89 remains a key region to watch, followed by further resistance closer to 0.7200-10.
These are key short-term resistance levels in case the buyers try to play the higher, while the major lower support levels are closer to 0.7140-50.
Further support is then seen closer to next 0.7100-09 if that gives way.
Looking ahead, the mood of risk will remain a key consideration in trading this week, but all eyes will be on Fed Chairman Powell’s speech for any clue on this and for the dollar as well.
As such, we can expect the near-term battle above to hold at the highlighted levels, although month-end feeds may complicate matters in future sessions.
Overall, however, the AUD / USD’s rise continues to be limited by its 200-week moving average and this will also be a level to watch before the close this week: