FX.co ★ iMeta | AUD/USD

Inching towards a potential breakout, the AUD/USD has steadily climbed throughout the Aussie session. Currently hovering near 0.6690, the Aussie dollar sets its sights on breaching the psychological level of 0.6700, with some analysts eyeing an even more ambitious climb toward 0.6750. USD Index Struggles Post-Fed Remarks: A significant player in this narrative is the US Dollar Index (DXY), which tracks the USD against a basket of six major currencies. Currently, it finds itself under considerable strain following the dovish sentiments expressed by Federal Reserve Chairman Jerome Powell post the interest rate decision on Wednesday. Powell's dismissal of further rate hikes has notably exacerbated the downward pressure on the USD. Central to Powell's remarks is the stalling progress on inflation, a key metric that the Fed closely monitors. He indicated that it might take longer than previously anticipated for inflation to approach the coveted 2% target. Powell also hinted that sustained robust hiring coupled with stagnant inflation could warrant delaying rate adjustments. Technical Analysis of the AUD/USD: The AUD/USD pair might maneuver toward the lower threshold of the symmetrical triangle, hovering around the nine-day Exponential Moving Average (EMA) at 0.6689. A decisive breach below this level could trigger further downward momentum, testing the throwback support at 0.6680. Conversely, a breakthrough above this resistance could propel the pair towards exploring the terrain around March's high of 0.6668.

The AUD/USD pair finds itself at a crucial crossroads, with potential encounters ahead. It could soon confront the psychological barrier of 0.6500, followed by the upper boundary around 0.6631. As of Thursday, trading hovers around 0.6690, with the pair reasserting its position within the symmetrical triangle pattern. Additionally, the 14-day Relative Strength Index (RSI) rests comfortably above the 50 level, indicating a prevalent bullish sentiment prevailing in the market.