The AUD/USD pair held resistance around 0.6555 in the Asian trading session on Wednesday. The news on the US-China relationship supports the dollar buying trend. So, the US government only plans to target Chinese companies that generate more than 50% of their revenue from quantum computing and artificial intelligence (AI). However, according to Bloomberg, US President Joe Biden is expected to make a statement regarding the ban this week.

The positive development in the world’s two largest economies can be seen in favour of the Chinese currency AUD (AUD), and then a rise can be observed towards the AUD/USD parity.

AUD/USD is trading below the 50 and 100 hourly exponential moving averages (EMA) on the four-hour chart, suggesting that the least likely path of resistance for the pair is to the downside.

The main resistance for AUD/USD will be at 0.6600, which marks the convergence of the upper region of the Bollinger Band, the August 4 high, and the 50 SMA. A penultimate break will see the next stop at 0.6625 (July 28 low) on the way to 0.6650 (100-hour EMA). Further filtering at 0.6700 (July 31 high, round number)

On the other hand, 0.6500, which shows the lower Bollinger Bands, the August 3 low, and the psychological round number hurdle, serves as initial support for the pair.

An intraday pullback below the last level will reveal the next competitive level at 0.6460 (the May 31 low). Further south, the next stop for AUD/USD is 0.6400 (a combination of psychological data and the November 2022 low).

Technical Analysis

By admin

Leave a Reply

Your email address will not be published. Required fields are marked *