AUDUSD pair marches toward 200-day moving average

The US dollar has come under severe selling pressure on Monday as the Fed reiterated its ultra dovish stance, and the AUDUSD pair rose nearly 2% on Monday.

On Tuesday, it was up another half a percent during the Frankfurt session, trading at around 0.6550.

The pair is now testing highs of the previous consolidation phase, which are near 0.65750. If this level is taken out, further gains toward 0.6640 could occur. Here, the 200-day moving average is converged with the upper line of the Bollinger bands. That will be the key resistance for the pair. 

If bulls are able to breach this resistance, we could see a quick upside move toward the 0.68 level. 

Alternatively, the critical support is seen near 0.6380, and as long as the Aussie trades above this level, the medium and short-term outlooks seem bullish. 

It looks like the Australian dollar is following equities, and since stocks have been rising permanently, we might see another leg higher in the Australian dollar as well. 
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