- AUD/USD bulls eye a move towards 0.6850.
- A break of the micro trendline opens risk to 0.6650.
AUDUSD increased to an 11-week high of 0.6813 after the US dollar fell across the board after Federal Reserve Chairman Jerome Powell said that the US central bank could scale back the pace of its interest rate hikes. This sent the US Dollar index on track for its worst month since 2010.
The following illustrates the technical outlook for AUD/USD on the daily and 4-hour charts:
AUD/USD daily chart
AUD/USD is heading into an area of liquidity and prior resistance between 0.6420/50. Should the US Dollar find buyers in its decent, AUD/USD could find itself on the way to test the rising trendline on the daily chart near 0.6750.
AUD/USD H4 chart
Moving down to the lower time frames we can see the possible areas of interest above and below the price. A break of the micro trendline opens risk to 0.6650. The Caixin China Manufacturing PMI data could be a meanwhile catalyst for the day ahead for lower time frame traders.
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