The AUDUSD moved higher early in the week, but the Fed’s less-dovish tone turned the tide — sending the AUD lower and the USD broadly higher. Stocks slipped and yields rose in response to the more hawkish message from Chair Powell. That helped the push lower as well.
Still, the downside move has found support near the 200-hour and 100-day moving averages, both converging around 0.65366. That confluence gives traders a clear risk-defining level, and buyers have stepped in to defend it. With risk contained below, “buyers are in play.”
The next upside targets sit first at the day’s high, and more importantly, the 100-hour MA at 0.65684 — a level broken to the downside yesterday and now acting as a key barrier. A move above it would shift momentum back in favor of the bulls.
If buyers can’t hold the line and price slips below the converged MAs, however, the bullish case fades and downside pressure returns.
Bottom line: The AUDUSD sits at a key crossroads — buyers have a defined shot from support, but they have work to do to wrestle full control. If they cannot do it, and the price falls below the dual MAs below, that bias will shift fully in favor of the sellers.
