The price of AUDUSD has rejected key supply zones in line with the strength meter analysis. But what next for the currency pair?
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The AUDUSD price is making a move lower in line with our expectations of the pair in the week ahead analysis video. We highlighted the strength meter was showing the USD was gaining strength and the AUD was at extreme highs in a reversal position.
Recently the Federal Reserve Chairman Jerome Powell announced that the Fed will hike interest rates by 50bps in an attempt to control the rate at which inflation is rising. This was a hawkish statement by the chairman which could see the USD continue to strengthen. This should push the AUDUSD price lower. We also looked at the recent Commitment of Trader reports which showed that commercials are increasing short positions which could also lead to a reversal.
The weekly chart shows consecutive bearish candles showing the bearish momentum forming in the market. The 4hr trend has been forming lower lows and lower highs offering short opportunities on the previous highs. The price has formed a double top on the 4hr time frame which could see sellers come back into the market on a retest of the neckline.
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