The Australian Dollar staged a bearish course correction on Wednesday and potentially set off a bull trap as the market inked in an intraday high of around US$0.7676.
The bears managed to post a Japanese candlestick bearish outside range day from the heavy descent, which now awaits confirmation.
A decisive US$0.7585 should trigger a further landslide for the AUD/USD pair.
Meanwhile, on Wednesday, the U.S. Federal Reserve’s March policy most recent meeting reinforced the U.S. central bank’s position to remain patient before raising rates.
Looking forward, our attention turns towards this Thursday’s U.S. weekly jobless claims and a speech by the U.S. Fed Chair Jerome Powell at a virtual International Monetary Fund (IMF) Seminar.
Viewing the technical standpoint, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator has plummeted through the 50-midway point, supporting a modest negative signal, while the Moving Average Convergence Divergence (MACD) holds a weak negative signal.
Due to the posted bearish outside range day, the bears are now facing the next hurdle of US$0.7585.
If breached, reinstates the downside call to US$0.7530, with US$0.7350-70 seen beneath as a bullish foundation.
Any upside contest is expected to feel the heat from the bears (supply) from the region of US$0.7695 to US$0.7710-25 (60-day MA).