The AUDUSD pair, also known as the Aussie, was down 0.25% on Wednesday, following inflation numbers from the US. At the time of writing, it was dropping toward the important support zone of 0.7320.
It looks the support zone has been tested already and it was defended, offering a nice bounce for the Australian dollar. It needs to stay above this level for the short-term trend to remain bullish.
Another support is slightly below at 0.73, where the 50-day moving average is seen. However, since the previous swing low was higher than the August low, it appears that the medium-term uptrend has begun.
The Aussie needs to climb above 0.7410, where previous highs are converged with previous lows, creating an impressive resistance. Another selling zone should be at the current cycle highs at 0.7465.
Bulls need to push the pair above it to confirm the medium-term upside bias. Considering the AUDUSD pair has been pretty resilient against the recent uptick in US yields, it might have a chance to begin another bullish wave.
AUDUSD Daily chart 3:30 PM CET