<p>On the daily chart below, we can
see that the price is trending downwards in a clean way. The blue short period <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
average</a> has been acting as resistance which is a sign of a strong selling
momentum. The sellers will have the red long period moving average and the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a> as resistance in case the price
pulls back. </p><p>As of now, the sellers are in
control and it looks like we will have a test of the 0.6629 <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a> soon. The RBA today delivered a <a target=“_blank“ href=“https://www.forexlive.com/news/aussie-lower-after-rba-offers-subtle-change-to-policy-guidance-20230307/“>dovish
hike</a> which should give the US Dollar another tailwind as the market looks
for a higher terminal rate for the Fed. In case key US <a target=“_blank“ href=“https://www.forexlive.com/EconomicCalendar“>economic data</a> like NFP and CPI comes out soft
though, we should see AUD/USD rallying as the market would reprice lower future
interest rate expectations. </p><p>On the 4 hour chart below, we can
see that the price has been ranging for about a week but today’s RBA monetary
policy announcement gave the sellers the catalyst to break out of the range. </p><p>The sellers may not be out of the
woods yet though as today we will have <a target=“_blank“ href=“https://www.forexlive.com/news/icymi-the-text-of-powells-testimony-may-be-released-ahead-of-his-appearance-20230307/“>Fed
Chair Powell testimony</a> and it’s expected that if he sounds dovish, the US
Dollar will lose some ground so we may see the price getting back into the
range, and in case he sounds hawkish, we should see the US Dollar getting even
stronger. </p><p>On the 1 hour chart below, we can
see more closely the breakout of the range caused by the RBA catalyst. The
buyers will need the price to get back into the range to hope for another run
into the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> at 0.6781 which will need the
support from the fundamentals. </p><p>The sellers may wait for a retest
of the broken support now turned resistance before piling in again or more
probably wait for the Fed Chair Powell testimony later today. </p>
see that the price is trending downwards in a clean way. The blue short period <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
average</a> has been acting as resistance which is a sign of a strong selling
momentum. The sellers will have the red long period moving average and the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a> as resistance in case the price
pulls back. </p><p>As of now, the sellers are in
control and it looks like we will have a test of the 0.6629 <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a> soon. The RBA today delivered a <a target=“_blank“ href=“https://www.forexlive.com/news/aussie-lower-after-rba-offers-subtle-change-to-policy-guidance-20230307/“>dovish
hike</a> which should give the US Dollar another tailwind as the market looks
for a higher terminal rate for the Fed. In case key US <a target=“_blank“ href=“https://www.forexlive.com/EconomicCalendar“>economic data</a> like NFP and CPI comes out soft
though, we should see AUD/USD rallying as the market would reprice lower future
interest rate expectations. </p><p>On the 4 hour chart below, we can
see that the price has been ranging for about a week but today’s RBA monetary
policy announcement gave the sellers the catalyst to break out of the range. </p><p>The sellers may not be out of the
woods yet though as today we will have <a target=“_blank“ href=“https://www.forexlive.com/news/icymi-the-text-of-powells-testimony-may-be-released-ahead-of-his-appearance-20230307/“>Fed
Chair Powell testimony</a> and it’s expected that if he sounds dovish, the US
Dollar will lose some ground so we may see the price getting back into the
range, and in case he sounds hawkish, we should see the US Dollar getting even
stronger. </p><p>On the 1 hour chart below, we can
see more closely the breakout of the range caused by the RBA catalyst. The
buyers will need the price to get back into the range to hope for another run
into the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> at 0.6781 which will need the
support from the fundamentals. </p><p>The sellers may wait for a retest
of the broken support now turned resistance before piling in again or more
probably wait for the Fed Chair Powell testimony later today. </p>
This article was written by ForexLive at www.forexlive.com.