- AUD/USD reverses Wednesday’s rebound-induced by dovish Powell.
- The aussie clings to 21-DMA support for the third straight session.
- Daily highs at 0.7471 could be retested as RSI stays bullish.
AUD/USD is turning south once again, having failed to find acceptance above the 0.7450 barrier amid a broad rebound in the US dollar and mixed Australian Trade and Retail Sales data.
The Fed tapered as expected but the central bank’s stance on the future rate hikes cheered the doves and triggered a sharp sell-off in the shorter-duration yields alongside the greenback.
From a short-term technical perspective, AUD/USD continues to challenge the 21-Daily Moving Average (DMA) at 0.7441, awaiting a daily closing below the latter to initiate a fresh downswing towards the descending 100-DMA at 0.7382.
If the bears flex their muscles, then the additional decline towards the upward-sloping 50-DMA at 0.7365 could be in the offing.
AUD/USD daily chart
On the upside, the immediate supply zone is seen around the daily highs of 0.7471.
The Relative Strength Index (RSI) has flattened while holding above the midline, keeping the buyers hopeful.
The next bait for bullish traders is seen at the 0.7500 round figure, above which Tuesday’s high of 0.7533 will be probed.