- AUD / USD rose sharply after the FOMC decision.
- The bulls are looking for a test of the multi-week highs near 0.7850.
- The short-term technical outlook remains neutral with a slight bullish bias.
The AUD / USD pair has reached its highest level since the beginning of March at 0.7818 during the Asian session on Thursday, making a strong technical bounce from the lows of 0.7697 on April 23. The AUD / USD pair looks quite aggressive while holding onto higher ground. At the time of writing, the pair has pulled back to the 0.7800 region, virtually unchanged on the day.
On the daily chart, the pair has been posting strong gains since April 1, when it hit a low at 0.7531. However, it appears that the AUD / USD bulls will struggle to hold near the multi-week high near 0.7850, while the background remains bullish. The uptrend extending from the April 1 low of 0.7531 provides immediate support to the bullish momentum.
Looking up, prices would first target the March 18 high near 0.7850, a key psychological level. Higher up, it will target the horizontal resistance zone of 0.7875.
The MACD indicator is comfortably above the midline, with a bullish crossover, suggesting that the bulls will not have much difficulty touching the February 25 high near the 0.8000 level if it manages to break above and stay above. region of 0.7850 mentioned above.
Looking down, prices would first meet the upward sloping line near the 0.7775 region, and then move towards 0.7750, a resistance now turned into support. Should it fall below this region, AUD / USD would seek refuge near Wednesday’s lows of 0.7720.
AUD / USD daily chart
AUD / USD technical levels
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