The AUDUSD pair declined on Wednesday, dropping to 0.6220 after the US Federal Reserve's latest decision. As expected, the Fed kept interest rates steady at 4.25%-4.50%, but its statement was cautious, removing previous comments about inflation improving. This signaled that future rate cuts might not come as soon as expected, boosting the US Dollar and putting pressure on the Aussie.
From a technical perspective, the pair remains weak, with indicators showing bearish momentum. If AUDUSD falls below 0.6200, it could reach 0.6170, while resistance is around 0.6230.
GBPAUD – D1 Timeframe
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Typically, when a price breaks a trendline, the retest of the same trendline often confirms a change in the market's direction. In the case of the price action on the daily timeframe chart of GBPAUD, the price broke below the trendline support and seems to be heading back towards the same trendline, but now as resistance. A hidden rally-base-drop supply zone aligns perfectly with the area of interest at the intersection of the two resistance trendlines. The sentiment from the daily timeframe is bearish.
GBPAUD – H4 Timeframe
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The 4-hour timeframe chart of GBPAUD lends more detail to the original setup on the daily timeframe chart. Here, we are able to see the FVG (Fair Value Gap) more clearly, with the supply zone being much more visible.
Analyst's Expectations:
Direction: Bearish
Target: 1.96794
Invalidation: 2.01398
CONCLUSION
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