FxWirePro: AUD/USD tests 200-DMA, Aussie bulls cheer Fed rate hike pause bets

Chart - Courtesy Trading View 

Spot Analysis:

AUD/USD was trading 0.78% higher on the day at 0.6734 at around 08:55 GMT.

Previous Week's High/ Low: 0.6724/ 0.6589

Previous Session's High/ Low: 0.6758/ 0.6660

Fundamental Overview:

Antipodeans remain bid after the Federal Reserve delivered a widely expected 25 basis point rate hike and signaled that the end of its tightening campaign could be in sight.

On the other side, RBA minutes showed the central bank would reconsider the case for a pause at the April meeting to reassess the economic outlook, according to the latest policy meeting minutes.

U.S. Treasury Secretary Janet Yellen spooked markets by telling she had not considered or discussed "blanket insurance" for U.S. banking deposits.

Further downside in the USD Index cannot be ruled amid an absence of blanket insurance for all deposits in collapsed banks.

Technical Analysis:

- AUD/USD pauses upside at 200-DMA resistance

- MACD supports further gains, Chikou span is biased higher

- Price action is above 200H MA and GMMA indicator is bullish on the intraday charts

- Momentum is bullish, Stochs and RSI are biased higher 

Major Support and Resistance Levels:

Support - 0.6698 (5-DMA), Resistance - 0.6757 (200-DMA)

Summary: AUD/USD trades with a bullish technical bias. That said, 200-DMA is major resistance and decisive break above required for upside continuation.