The AUDUSD prior to the FOMC rate decision yesterday, found willing buyers leaning against the rising 100-hour moving average at 0.7055 and the falling 200-hour moving average at 0.7042.
However, the Fed’s more hawkish tone sparked a sharp selloff, sending the pair below both key moving averages and shifting the near-term bias in favor of sellers
The decline extended to 0.6994, briefly breaking below the psychologically important 0.7000 level and the 61.8% retracement at 0.7002 of the rally from the late-March low. The low price yesterday reached 0.6994 before bouncing back above the 0.7000 level. That level has since emerged as an important support zone.
In trading today, the pair rebounded during the Asian session and pushed back toward the falling 200-hour moving average at 0.7042, reaching a high of 0.7041 before sellers stepped in and defended the level. On the downside, the price dipped to 0.70015, just below the 61.8% retracement at 0.70025, but buyers again helped stabilize the market near the 0.7000 support area. As a result, the AUDUSD is now trapped between well-defined support and resistance, setting up a key short-term battle.