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The AUD/USD pair has been trading with a negative bias for two consecutive days but remains above the critical 0.7050 level during the Asian session. The pair lacks strong bearish momentum, indicating a potential consolidation phase ahead of the upcoming Federal Reserve meeting. The 100-day Simple Moving Average (SMA) is now a key technical level to monitor, as a break below this could signal further downside toward 0.6950. Conversely, a sustained move above 0.7050 might retest the 0.7150 resistance zone.
For traders, the pair's behavior near the 100-day SMA and the Fed's policy decision are critical. A weaker-than-expected USD due to dovish Fed signals could benefit the AUD/USD, while hawkish rhetoric might pressure the pair. The lack of conviction in the current bearish trend suggests volatility could increase as the market anticipates central bank guidance.
Looking ahead, investors should watch for a breakout or breakdown around the 0.7050-0.7150 range. The Fed's meeting on [insert date] will be pivotal, with any hints of rate cuts or pauses likely to drive short-term price action. Technical indicators like the RSI and MACD may provide additional clues about momentum shifts.
