AUD/USD Price Analysis: The pair has moved back up with the trend but it still looks shaky

AUD/USD 4-hour chart

Ahead of tomorrows (Wednesday) FOMC meeting AUD/USD has continued to push higher. This falls in line with the recent trend of higher highs and higher lows on the 4-hour chart. The current issue is the main high on the chart is pretty far away from the current price as the last price correction was pretty deep. 

The Fed meeting will be an interesting one. At the virtual Jackson Hole meeting, Fed Chair Powell stated the bank will be moving to an average inflation target and will not move rates till unemployment reaches a certain level. This needs more clarification and forward guidance as always will be watched very carefully. 

Looking at the chart, as the dollar drops off AUD has been taking advantage and pushed higher once again. The price made a new wave high but met some selling pressure at 0.7344 and now that zone will be the level to break for the bulls. 

The indicators are looking positive. The MACD histogram and signal lines are above the zero level and the Relative Strength Index is above 50. There is still some room for the Relative Strength Index to move to the upside and it would if a challenge of the highs is made.

Overall, on the higher timeframes, the price is still in a very decent uptrend. The FOMC meeting will be crucial tomorrow as market participants can guage if the recent dollar weakness is sustained.

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