On the daily chart below, we can see that the price bounced near the key support at 0.6563 and eventually spiked up as the RBA surprised with an interest rate hike. The price action remains choppy as central banks are near the end of their tightening cycles and the market is uncertain on what’s next.
The economic data keeps sending conflicting messages and the volatility is high around the regional banking woes in the US. AUD is sensitive to risk sentiment, so traders will need to ride the ups and downs in the market’s mood.
AUDUSD technical analysis
On the 4 hour chart below, we can see more closely the ugly choppiness in the pair in the last 2 months. This may be a big double top pattern within a correction which could be a stronger signal of a continuation to the downside, but the risk sentiment should turn sour to make the price to break below the support and increase the bearish momentum. Today we have the ISM Services PMI and the FOMC policy announcement, so watch out.
On the 1 hour chart below, we can see that the price is now consolidating in a little box testing the trendline and the 61.8% Fibonacci retracement level. This is where the buyers should step in to try another push to the upside. The sellers, on the other hand, will want to see the price to break below the trendline to start piling in and target the support at 0.6563 or even a new lower low.
