AUD/USD is testing key near-term levels amid the dollar fallout
After the Fed announcement yesterday, the dollar weakened and that saw AUD/USD run higher to test the 100-hour MA (red line) before backing off.
However, the pair still gradually crept higher and has been continuing its run today amid the weaker dollar across the board. As the greenback is trading near session lows now, AUD/USD is running testing the near-term resistance region of 0.5964-85.
Just above that is the 200-hour MA (blue line) @ 0.5989 and that is a key line in the sand with the near-term bias keeping more neutral currently.
A break above that will see buyers seize near-term control and a firm move above 0.6000 could set up a good platform for buyers to keep with a short squeeze higher.
Despite the economic fallout from the virus outbreak still a key factor in the market, the near-term picture in the pair is starting to show signs of life as losses consolidate over the past few sessions - which is also a good thing for the aussie.
As such, a shift in the near-term bias could trigger some added correction in the pair before we see how market sentiment develops later on in the week.
On Thursday, we will have US weekly initial jobless claims data and that will be a real showstopper so just be mindful of the potential market reaction despite the Fed throwing the kitchen sink at the problem overnight.
But for now, both the 200-hour MA and the 0.6000 level remain key lines in the sand in stopping AUD/USD from a further breakout to the topside.
