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      AUDUSD Experiences Correction Amidst Bullish Sentiment

      The AUDUSD currency pair is currently undergoing a correction after breaking above the May high earlier this week. This upward movement was largely driven by a stronger-than-expected Australian Consumer Price Index (CPI) report, which indicated a monthly inflation rise of 1.0% and an annual increase of 3.5%, surpassing the anticipated 3.3%. This data initially supported the Australian dollar, allowing the AUDUSD to reach a peak of 0.7207.

      However, the momentum has stalled as the pair fell below the 0.7200 mark, marking a significant shift in market dynamics. The strengthening of the US dollar, influenced by a hawkish speech from Federal Reserve Chair Kevin Warsh at the Jackson Hole conference, has led to increased expectations for a Fed rate hike, now estimated at 60%. This shift has contributed to a bearish sentiment for the AUDUSD, particularly after breaking below the 100-hour moving average at 0.7179.

      The next critical level to watch is the rising 200-hour moving average, currently near 0.7150. A sustained drop below this level could give sellers greater control, potentially leading to further declines. Additional downside targets include a swing area around 0.7125 and the 38.2% retracement level near 0.7098. Conversely, if buyers can defend the 200-hour moving average and push prices back above the 100-hour moving average, it could stabilize the technical outlook and allow for a retest of the recent high at 0.7207.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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