AUDUSD test sets the 200 hour moving average
The AUDUSD pair is currently facing significant pressure as it tests a key technical level: the 200-hour moving average, located at 0.66048. This level is crucial, as it coincides with an upward-sloping trendline. A break below this moving average could shift focus towards the 200-day moving average at 0.65791. On the flip side, if the pair manages to hold above this support level, it would remain in a neutral zone, bounded by the 100-hour moving average above at 0.6632 and the 200-hour moving average below.
Market participants are also closely watching the upcoming decision from the Reserve Bank of Australia on interest rates, scheduled for 10:30 PM ET on Tuesday. The central bank previously raised rates by 25 basis points to 4.35%, which initially led to a decline in the AUDUSD to around 0.6500, bottoming out on November 10 at 0.63384. However, the pair has since recovered, aided by a weaker USD in November as market expectations shifted towards potential Federal Reserve rate cuts in 2024.
Last week, the AUDUSD briefly fell below both the 200-hour and 200-day moving averages, but lost momentum and subsequently rebounded, reinforcing the 200-hour moving average as a key support level.