FX.co ★ AUD/USD rejected off 0.6967 key resistance

The AUD/USD pair dropped in the short term after reaching strong resistance. Now, it is trading at the 0.6934 level at the time of writing. The price retreated as the Dollar Index managed to rebound in yesterday's trading session. Still, in the short term, the currency pair could try to extend its swing higher.

Fundamentally, the Australian CPI rose by 1.8% less versus 1.9% expected, while the Trimmed Mean CPI surged by 1.5% matching expectations. Later, the US Durable Goods Orders may report a 0.5% drop, Core Durable Goods Orders could register a 0.2% growth, while the Pending Home Sales indicator is expected to report a 1.1% drop. Poor US data could weaken the greenback. Still, the most important event of the week is represented by the FOMC.

The FED could increase the Federal Funds Rate by 75bps. As you already know, the US reported higher inflation again, so the Federal Reserve needs to take action. It remains to see if this will be bullish or bearish for the USD.

AUD/USD Minor Retreat!

As you can see on the H4 chart, the rate failed to stabilize above the ascending pitchfork's upper median line (uml) signaling that the bulls are exhausted. It has found strong resistance (supply) right above the 0.6967 ket level.

Now, it has dropped by the bias remains bullish in the short term as long as it stays above the median line (ml) which represents dynamic support.

AUD/USD Forecast!

As long as it stays above the median line (ml) and above the pivot point (0.6890), AUD/USD could still resume its growth. A valid breakout above 0.6977 and through the upper median line (uml) could activate an upside continuation and could bring new long opportunities.