• The pair stalled this week’s rejection slide from 200-period SMA on the 4-hourly chart and staged a solid bounce from weekly low, with bulls now eyeing a move towards reclaiming the 0.7100 handle.
• The pair’s inability to find acceptance below a short-term ascending trend-channel formation on hourly charts clearly indicates traders reluctance to carry aggressive bets ahead of the FOMC decision.
• Given that short-term technical indicators have just started gaining traction, a move beyond 100-period SMA on the 4-hourly chart might be seen as a key trigger for intraday bullish traders.
• Hence, a follow-through move, possibly even beyond 200-period SMA, towards challenging the trend-channel resistance, currently near the 0.7140 region, now looks a distinct possibility.
AUD/USD 4-hourly chart