AUD/USD Price Analysis: Bulls turn the screw in a short squeeze on the back of the Fed

AUD/USD bulls turn it up on the back of a less hawkish Fed outlook.
The technicals now lean bullish, at least for the near term.

Ross J Burland FXStreet

AUD/USD is recovering on the back of a risk rally and relief that the Federal Reserve's chairman, Jerome Powell, is arguing the case for less aggressive tightening. This leads the technicals into a bullish outlook as per the following analysis below:

AUD/USD daily chart

From a daily perspective, the price is attempting to reach into the 0.7050s in a correction of the last leg of the M-formation's bearish impulse. This aligns with a 50% mean reversion.

AUD/USD hourly chart

The bulls have cracked a number of hourly resistances in the move out of the downtrend and are un the runnings for higher corrective highs in the coming sessions.

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.

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