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AUD/USD rose sharply after the FOMC decision.
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Bulls are looking for a test of multi-week high near 0.7850.
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Near-term technical outlook remains neutral with a slight bullish bias.
The AUD/USD pair climbed to its highest level since early March at 0.7818 on Thursday and staged a strong technical bounce from the lows of 0.7697 on April 23. The AUD/USD pair looks quite aggressive while holding the higher ground.
At the time of writing, AUD/USD is trading at 0.7815, up 0.36% on the day.
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On the daily chart, the pair has been posting strong gains from April 1 since it made a low of 0.7531. However, it seems AUD/USD bulls will have a difficult time sustaining near the multi-week high near 0.7850 while the undertone remains bullish. The ascending trend extending from April 1 low of 0.7531 provides immediate support to the upside momentum.
Moving higher, the prices would first meet March 18 high near 0.7850, a key psychological mark. The next will be the 0.7875 horizontal resistance zone.
The Moving Average Convergence Divergence (MACD) indicator reads comfortably above the midline, with a bullish crossover, which suggests that the bulls will not face much struggle to touch February 25 high in the vicinity of 0.8000, if the 0.7850 hurdle is crossed and sustained well above.
On the flip side, the prices would first meet the rising slope line near the 0.7775 region, and then it would navigate toward 0.7750 a resistance turned support area. If this happens, then the price would seek shelter near Wednesday’s lows of 0.7720.
