The Reserve Bank of Australia (RBS) is due to release their monetary policy minutes momentarily, while the AUDUSD trades lower ahead of the release.
Earlier in the day, the pair broke .9400 for a short time before trading back down. The Intraday, 4H chart shows price action finding resistance at .9420. The last four intraday candles traded strongly in the read and at the end of their range.
Current price action is finding the 20 EMA as support. This may provide a bounce or become resistance depending on the RBA’s rhetoric. A move up to the 50 EMA is possible but should act as strong intraday resistance after not finding much conviction to stay above .9400.
If the 20 EMA is broken, following a close, price action can trade lower to the next level of price action support at .9243 and .9310. The Australian dollar may find support above .9300 with the dollar falling out of favor ahead of the FOMC. However, price action has trading through an ascending trend line and a pullback to test lower support is likely.
On the hand, a close above the .9400 level will allow a retest of .9420. A break above this level would be capped 30 pips higher at the 200 EMA.