AUDUSD pares weekly gains while easing to 0.7543 amid early Wednesday. The pair earlier benefited from the Fed’s rejection to rate hike and tapering before the US dollar picked up safe-haven bids. Additionally, weighing on the quote could be risk-negative headlines from China and cautious sentiment ahead of US PMIs. Hence, failures to cross the key moving average, namely 200-DMA around 0.7555, could recall the 0.75000 threshold on the chart. However, any further downside will be restricted by a four-month-old support line near 0.7485.
Meanwhile, an upside breakout of 200-DMA level of 0.75555 will need to cross multiple lows marked since early February near 0.7580 to convince buyers for a return. Following that, the 0.7600 and early month low near 0.7645-50 should gain the market’s attention as a break of which could confirm the bullish momentum targeting the monthly top near 0.7775. Overall, AUDUSD fades bounce off the key support line and hence further weakness can’t be ruled out.
Meanwhile, an upside breakout of 200-DMA level of 0.75555 will need to cross multiple lows marked since early February near 0.7580 to convince buyers for a return. Following that, the 0.7600 and early month low near 0.7645-50 should gain the market’s attention as a break of which could confirm the bullish momentum targeting the monthly top near 0.7775. Overall, AUDUSD fades bounce off the key support line and hence further weakness can’t be ruled out.