The AUDUSD pair reversed an early dip to sub-0.7300 level and climbed to 1-1/2 week tops, around the 0.7325 region in the last hour. What is next? Gain insight into the following technical analysis.
November 29, GKFX – The Fed Chair Jerome Powell’s dovish comments on Wednesday prompted some aggressive US Dollar selling and assisted the pair to build on the previous session’s modest rebound from two-week lows.
The greenback selling remained unabated through the Asian session on Thursday, helping the pair to continue gaining traction for the third consecutive session and build on its momentum beyond the 0.7300 handle.
The uptick, however, lacked any strong conviction/follow-through amid persistent US-China trade tensions, which might continue to keep a lid on any strong up-move for the China-proxy Australian Dollar.
The market focus now shifts to the release of the minutes from the Nov. FOMC meeting, which will be closely scrutinized to see if other policymakers’ also thought that interest rates are just below neutral.
With investors now pricing in only one more rate hike in 2019, any further dovish signals might continue denting sentiment surrounding the greenback and eventually provide some fresh bullish impetus to the major.
AUDUSD Technical Analysis
Immediate resistance is pegged near the 0.7335-40 region, above which the pair is likely to surpass the 0.7370 intermediate hurdle and aim towards reclaiming the 0.7400 handle.
On the flip side, the 0.7300-0.7295 region now seems to protect the immediate downside, which if broken might prompt some additional weakness further towards the 0.7265-60 horizontal support.
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