Will AUD/USD Reverse at Resistance Above 0.77?

Yesterday this pair experienced some initial negative movement before bouncing back up. However, this market is expected to continue experiencing high volatility due to the Federal Reserve’s role in bailing out banks, and the current inflationary environment.

The 0.6700-20 zone is important since it has acted as both support and resistance. While the Monday session saw the candlestick test this area, there was significant selling pressure in that level. We also saw some consolidation hich lasted for about a week just above this level before the significant breakdown.

The expectation is that there will be major issues from time to time, and although the Australian dollar looks short-term bullish, it is expected to face selling pressure eventually as the US dollar strengthens in this difficult period. So, we’re keeping a bearish bias overall for this pair, as US inflation remained high yesterday, which means a hawkish FED if the bank run doens’t escalate.

Highlights of the US February 2023 CPI Report