AUD/USD technical analysis: Probing 50-day MA hurdle

AUD/USD is chipping away at the 50-day MA hurdle for the second day.
Fed's Bullard pushed back against 50 bps rate cut in July.
The daily chart is biased in favor of the bulls.

Omkar Godbole FXStreet Contributor

AUD/USD is attempting a break above the 50-day moving average (MA) hurdle this Wednesday morning in Asia, having failed to hold on to gains above the crucial average on Tuesday.

The US Federal Reserve officials pushed back against aggressive rate cut views Tuesday. Notably, St. Louis Federal Reserve Bank President James Bullard said the US economic situation is not dire enough to warrant a 50 basis point rate cut in July.

As a result, the USD picked up a bid and the AUD/USD pair ended up creating a doji candle at the 50-day MA hurdle on Tuesday. As of writing, the pair is trading around the 50-day MA of 0.6965.

It is worth noting that Fed's Bullard maintained his call for a 25 basis point cut in July. Further, the pair has found acceptance above 0.6949 and the 5- and 10-day MAs are reporting a bullish crossover. The 14-day relative strength index is also reporting bullish conditions with an above-50 print.

As a result, the pair could find acceptance above the 50-day MA.

Daily chart

Trend: Bullish

Pivot points

1. R3 0.7017
2. R2 0.6998
3. R1 0.6979
PP 0.696
1. S1 0.6942
2. S2 0.6923
3. S3 0.6904

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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