AUD/USD bulls testing key resistance near 0.6700
|- AUD/USD bulls are in the market and eye a break 0.6700.
- Bulls look to the 0.6850s on the daily chart as a prospect.
AUD/USD rallied to the highest in nearly two weeks on Wednesday in the US session after the Federal Reserve hiked rates by another 25bps, as expected. However, the Fed came around with a far more dovish tone this time.
Analysts at Rabobank have lowered their forecast for the target range of the fed funds rate to 5.00-5.25% from 5.25-5.50%. In other words, we now expect only one more hike of 25 bps instead of two. ´´However, we stick to our forecast that the FOMC will not pivot this year.´´
Meanwhile, on the domestic front, the Reserve Bank of Australia´s minutes revealed a central bank that will reconsider the case for a pause at the April meeting to reassess the economic outlook that remained looking uncertain.
All in all, the fundamentals have overridden the technical picture but the bulls are in play at this juncture as the following illustrates:
AUD/USD daily chart
From a daily perspective, the bulls are on board and looking to fully test the 0.6850s on a break beyond 0.6758 highs.
AUD/USD H4 chart
However, there is some work to be done yet. 0.6700 needs to give on a closing basis on the 4-hour chart that guards 0.6730 resistance.
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