A clearer bullish signal was displayed on the AUD/USD currency pair chart after the US dollar’s weakening reaction following the FOMC meeting.
The Federal Reserve (Fed) met its forecast to raise interest rates by 50 basis points, but investors were more reacting to a follow -up statement by Chairman Jerome Powell that stated the central bank was not considering a 75 basis point rate hike.
This has left room for the Aussie dollar to strengthen against the US dollar following the Reserve Bank of Australia (RBA) earlier in the week higher at 0.35% than expected to rise to 0.25% from 0.10% previously.
After the initial rise in prices took place in the Asian session last Tuesday, the bullish pattern was seen to continue after the FOMC meeting with a jump above the 0.7200 level.
Signaling for a bullish move, the price has also moved above the Moving Average 50 (MA50) support level on the 1 -hour time frame on the AUD/USD chart this week.
The price movement flattened for a while in the Asian session this morning after the surge in the previous session, the price hovered at the level around 0.72300 with the expectation that the rise will continue in subsequent sessions.
For higher upside expectations, the initial target is to head to the resistance zone at 0.73600 before proceeding further upside to around 0.74500.
However, if the US dollar manages to strengthen again and push prices lower, a decline will occur and is expected to decline back to the 0.7100 zone.
A lower decline in the price will lead to the focus zone at the support of 0.7000 for movement on the bearish trend.
