AUD/USD Price Analysis: Bulls going against the grain to M-formation neckline target

AUD/USD bulls step in and target the daily M-formation neckline as the greenback slides.
DXY is testing 96 the figure ahead of the Fed.

Ross J Burland FXStreet

As per prior analysis at the start of the week, AUD/USD Price Analysis: Bears move the Aussie to the edge of the abyss, the price has advanced towards an identified daily target area in recent trade.

AUD/USD, prior analysis

It was started that ''AUD/USD's M-formation on the daily chart is a compelling chart pattern for the week ahead.''

AUD/USD live chart

As illustrated, the bulls have homed in n the neckline of the M-formation in trade today. This has occurred in a sharply hourly bullish impulse as follows:

The bullish impulse may not be over yet, but a correction could be in order back towards the prior resistance that has a confluence with the 38.2% Fibonacci retracement of the recent rally that meets with the 10-EMA.

The move has occurred as the US dollar sinks to test deeper liquidity and 96 the figure in the DXY index, breaking prior resistance and support as follows:

However, considering how fluid geopolitics are, if there is a Russian invasion of Ukraine, the US dollar would be expected to continue higher. In turn, this would be taking the Aussie down with it for a test of bullish commitments in the lower end of the 0.70 areas.

Additionally, the M-formation is a reversion pattern, so a move higher in the greenback could infold in coming hours as markets get set for the Federal Reserve.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD remains offered near 1.1950

EUR/USD comes under pressure near the 1.1950 zone following the closing bell on Wall Street on Wednesday. The Greenback’s rebound prompted spot to face some correction while investors continue to assess the latest FOMC event. On Thursday, the focus of attention will be on the weekly US labour market data and Factory Orders.

GBP/USD hesitates at four-year highs following lackluster Fed rate hold

GBP/USD churned in place on Tuesday, hitting a brief patch of volatility but otherwise holding steady near four-year highs as the US Dollar struggles to find its footing. The Federal Reserve held interest rates steady, as many investors broadly anticipated, but the Fed’s rate statement and Fed Chair Jerome Powell both failed to give any hints about potential shifts toward future rate cuts, which many investors broadly hoped.

Gold climbs above $5,500 for the first time on record

Gold price surges to a fresh record high of $5,579 before retreating to around $5,500 in early Asian trading on Thursday. The rally of the precious metal is bolstered by strong safe-haven demand amidst persistent geopolitical tensions, economic uncertainty, and a weaker US Dollar.

Fidelity unveils FIDD stablecoin, set to launch in coming weeks

Fidelity Investments announced that it will launch its first stablecoin, the Fidelity Digital Dollar, making it one of the first large traditional firms in the US to do so. The company will leverage the Ethereum blockchain to roll out the product to retail and institutional investors in the coming weeks, according to a press release on Wednesday.

Federal Reserve pauses, sees economy on firm footing

At its January meeting, the Federal Reserve kept the Fed Funds Target Range (FFTR) unchanged at 3.50%–3.75%, a decision that was fully in line with market expectations.

Bittensor Price Forecast: TAO rallies above $240 as AI tokens rebound

Bittensor reclaims $240 immediate support, reflecting positive sentiment in the broader crypto market. The TAO derivatives market signals retail interest return as futures Open Interest climbs to $163 million.