The AUDUSD prior to the FOMC rate decision yesterday, found willing buyers leaning against the rising 100-hour moving average at 0.7055 and the falling 200-hour moving average at 0.7042. However, the Fed’s more hawkish tone sparked a sharp selloff, sending the pair below both key moving averages and shifting the near-term bias in favor of sellers.

The decline extended to 0.6994, briefly breaking below the psychologically important 0.7000 level and the 61.8% retracement at 0.7002 of the rally from the late-March low. The low price yesterday reached 0.6994 before bouncing back above the 0.7000 level. That level has since emerged as an important support zone.

In trading today, the pair rebounded during the Asian session and pushed back toward the falling 200-hour moving average at 0.7042, reaching a high of 0.7041 before sellers stepped in and defended the level. On the downside, the price dipped to 0.70015, just below the 61.8% retracement at 0.70025, but buyers again helped stabilize the market near the 0.7000 support area.

As a result, the AUDUSD is now trapped between well-defined support and resistance, setting up a key short-term battle. For sellers to strengthen their grip, they need to break and stay below 0.7000. A move lower would target last week’s low at 0.6978, followed by a broader support zone between 0.6938 and 0.6962 that dates back to March.

For buyers to regain control, they need to reclaim the 200-hour moving average at 0.7042 and then the 100-hour moving average at 0.7055. The 50% midpoint of the rally from the March low also resides near that area, adding to its importance. Beyond that, the 100-day moving average at 0.7083 becomes the next upside objective.

For now, the battle lines are clearly drawn, with the market fluctuating between support near 0.7000 and resistance near the 200-hour moving average, awaiting the next catalyst to break the stalemate.