AUD/USD Price Analysis: The key barrier is seen at the 0.6600 area
The AUD/USD pair remains on the defensive around 0.6555 in the Asian trading hours on Wednesday. The prevalent US Dollar buying bias is supported by the headlines surrounding the US-China relationship.
That said, the US government intends to target only Chinese companies that generate more than 50% of their revenue from quantum computation and artificial intelligence (AI). However, US President Joe Biden is expected to issue an executive order this week about the restriction, according to Bloomberg.
According to the four-hour chart, AUD/USD trades below the 50- and 100-hour Exponential Moving Averages (EMAs), highlighting that the path of least resistance for the pair is to the downside.
The key resistance level for AUD/USD will emerge at 0.6600, indicating a confluence of the upper boundary of the Bollinger Band, a high of August 4, and a 50-hour EMA. A break above the latter will see the next upside stop at 0.6625 (low of July 28) en route to 0.6650 (100-hour EMA). The additional upside filter is located at 0.6700 (high of July 31, a round figure).
It’s worth noting that the Relative Strength Index (RSI) stands below 50, challenging the pair’s immediate downside for the time being.
The AUD/USD pair remains on the defensive around 0.6555 in the Asian trading hours on Wednesday. The prevalent US Dollar buying bias is supported by the headlines surrounding the US-China relationship.
That said, the US government intends to target only Chinese companies that generate more than 50% of their revenue from quantum computation and artificial intelligence (AI). However, US President Joe Biden is expected to issue an executive order this week about the restriction, according to Bloomberg.
According to the four-hour chart, AUD/USD trades below the 50- and 100-hour Exponential Moving Averages (EMAs), highlighting that the path of least resistance for the pair is to the downside.
The key resistance level for AUD/USD will emerge at 0.6600, indicating a confluence of the upper boundary of the Bollinger Band, a high of August 4, and a 50-hour EMA. A break above the latter will see the next upside stop at 0.6625 (low of July 28) en route to 0.6650 (100-hour EMA). The additional upside filter is located at 0.6700 (high of July 31, a round figure).
It’s worth noting that the Relative Strength Index (RSI) stands below 50, challenging the pair’s immediate downside for the time being.