AUD/USD in a short squeeze on the back of Fed’s decision

The AUD/USD pair turns up mainly by bulls on the back of Fed’s hawkishness. The technical analysts tend now to be bullish, at least for the near term.

The AUD/USD pair is recovering on the back of a risk rally and relief that the Federal Reserve’s chairman, Jerome Powell, is arguing the case for less aggressive tightening.

This leads the technicals into a bullish outlook. From a daily perspective, the price is attempting to reach into the 0.7050s in a correction of the last leg of the M-formation’s bearish impulse. This aligns with a 50% mean reversion.

The bulls have fractured a number of hourly resistances in the move out of the downtrend and are un the runnings for higher corrective highs in the coming sessions.