AUD/USD price action is focused around key near-term levels currently
The topside move yesterday was capped by the 100-hour MA (red line) once again and that saw sellers regain near-term control in a push back under the 200-hour MA (blue line) – where price action continues to trade now.
There is some minor support closer to 0.7160 and that has helped to form a near-term wedge in the pair and that is a technical pattern to consider over the next few sessions, especially with the anticipation towards Fed chair Powell’s speech on Thursday.
In any case, the confluence of the key hourly moving averages @ 0.7186-89 remains a key region to watch followed by further resistance closer to 0.7200-10.
Those are key near-term resistance levels to eye in case buyers try to make a play for the upside, while key downside support levels are seen closer towards 0.7140-50.
Further support is then seen closer to 0.7100-09 next should that give way.
Looking ahead, the risk mood will remain a key consideration in trading this week but all eyes will be on Fed chair Powell’s speech for any clues on that and for the dollar as well.
As such, we may expect the near-term battle above to keep around the levels highlighted though month-end flows could complicate things in the sessions ahead.
In the bigger picture though, AUD/USD upside continues to be limited by its 200-week moving average and that will also be a level to watch ahead of the close this week:
