AUD/USD perks up and takes on fresh corrective highs

U.S. economy

AUD/USD is on the rise in Tokyo, rising from the 0.6660s to a new high of 0.6691. Before the Federal Reserve meeting next week, the markets are on edge. Overnight, the European Central Bank raised interest rates. This caused a knee-jerk drop in the value of the Euro, which later recovered and kept pushing against resistance.

Technical Overview

The AUD/USD moved away from its monthly lows, starting a needed recovery that was stopped by the 0.6660 area. After hours of staying in a small range, technical indicators don’t show anything clear. If the AUD/USD fell below 0.6630, it would head back towards 0.6600. Below, there isn’t much until the critical support area between 0.6560 and 0.6580, which is keeping the pair from falling too far.

The 20-period Simple Moving Average acts as resistance around 0.6660 on the 4-hour chart. A test of the horizontal and psychological area of 0.6700, which is supported by a downtrend line, could happen if the price breaks above it. If the Aussie stays above the 0.6705 zone, it will retake a key technical area. If the price doesn’t go above, it could be seen as a sign that the sellers are still in charge.

Support levels: 0.6630 0.6570 0.6530

Resistance levels: 0.6665 0.6695 0.6730

Fundamental Overview

Source: Team CurrencyVeda