AUD/USD sold off after the FOMC rate decision but found buyers near its 100-day moving average and has since reclaimed short-term resistance levels. The pair now faces a tougher test between 0.71168 and 0.71270 before the rebound can extend further.
AUD/USD dropped as low as 0.7078 following the FOMC rate decision before buyers stepped in at a key technical cluster. The decline stalled where the rising 100-day moving average sits at 0.70795. That level meets the 50% retracement of the move up from the end-of-July low, at 0.70773.
Sellers could not sustain the break below that support cluster. As downside momentum faded, they began covering positions, and buyers pushed the price back to the upside.
Lower yields and firmer commodities back the bounce
The recovery is not purely technical. US Treasury yields moved lower on the day, easing support for the dollar, while gold and silver prices moved sharply higher. Because Australia is a major commodity exporter, stronger commodity prices tend to support demand for the Australian dollar, though the relationship does not hold perfectly every day.
Buyers reclaim short-term levels
The rebound gained traction after AUD/USD moved back above 0.70908 and then 0.71017, levels that showed the move was more than a small bounce. The 0.71017 mark now works as an interim barometer: staying above it keeps the short-term bias tilted toward buyers, while a break back below would open the door to a retest of 0.70908 and then the 0.70773–0.70795 support zone.
Resistance near 0.71168–0.71270 is the next test
The next hurdle sits between approximately 0.71168 and 0.71270, where the 38.2% retracement, a prior swing area and the falling 100-hour moving average converge. A falling moving average often draws sellers on its first test, so buyers need to clear and hold above that zone to gain fuller control. Until then, the rebound remains constructive but incomplete.
Source: Investinglive
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