Over the past 24 to 48 hours, the AUD/USD pair hovered around 0.6975, slightly below the previous day’s closing price of 0.69784. Market sentiment was pressured by a sharp selloff in Asian technology stocks, diminishing risk appetite and weighing on the Australian dollar. Investors are focused on the upcoming Australian Consumer Price Index (CPI) and Federal Open Market Committee (FOMC) meeting, both critical events expected to drive the next significant move in the currency pair.

For the average investor, this situation is like awaiting the results of an important exam, with the market currently cautious and seemingly waiting for clear signals. The tech selloff acts like a sudden thunderbolt, dampening market confidence temporarily. This environment implies that the AUD is unlikely to breach the key 0.70 psychological level in the short term. Investors holding or watching the AUD should stay alert and pay close attention to upcoming economic data releases to manage risk effectively.

Daily Chart

The daily chart shows AUDUSD fluctuating within the 0.697-0.715 range over recent weeks, with a slight downtrend emerging recently. The 50-day moving average sits at 0.6993 serving as resistance, while the 200-day moving average near 0.6974 acts as support. Bollinger Bands indicate mid-band proximity with reduced volatility. MACD histogram signals waning momentum and a declining trend in the oscillator, suggesting increased short-term downside pressure.

1H Chart

On the hourly chart over the last 3-5 days, AUDUSD has consolidated between 0.6960 and 0.7000, forming a short-term congestion zone. Bollinger Bands are narrowing, hinting at a potential breakout soon. Moving averages show mixed signals with a slight downward bend in short-term averages. A descending triangle pattern began forming about five days ago, indicating a likely bearish breakout if price falls below 0.6960. Recent bearish engulfing candlestick signals further confirm seller dominance for the next 24 hours.

Technical Trend:  Cautiously Bearish Consolidation

Technically, AUDUSD remains below crucial moving averages on the daily chart, indicating ongoing bearish pressure. The MACD shows a bearish crossover with RSI positioned low-to-mid, signaling room for further downside. The hourly descending triangle pattern nears completion; a break below 0.6960 support could accelerate declines. Traders should watch volume and momentum for clues, while monitoring Australian CPI and Fed announcements for confirmation of the next trend direction.

Today’s economic calendar highlights the Australian CPI release at 03:30 GMT+1, with forecasts steady at 4% year-over-year as per prior data. Later, at 20:00 and 20:30 GMT+1, the US Federal Reserve will announce their interest rate decision and hold a press conference. These key events will heavily influence AUDUSD. If Australian CPI meets or misses forecasts, it could pressure the Aussie. Conversely, a hawkish Fed stance will likely strengthen the USD, pushing AUDUSD lower.

Resistance & Support

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