In today's trading session, our focus is on AUDUSD, where we're eyeing a selling opportunity around the 0.65200 zone. Technically, AUDUSD has been in an uptrend, but there are indications of a potential breakout to the downside. If the price dips below the 0.65200 support level, we anticipate a retracement of the breakout towards lower levels.
Adding a fundamental layer to our analysis, recent remarks by Federal Reserve Chairman Jerome Powell have influenced our outlook on the US dollar. Powell's statement, made yesterday on January 31st, indicated that there won't be any rate cuts in March. This commentary has led to expectations of potential strength in the US dollar as it suggests a more hawkish stance by the Fed regarding monetary policy.
Given this fundamental development, we anticipate that any further weakness in AUDUSD could be exacerbated by potential dollar strength following Powell's warning. Traders should monitor the market closely for confirmation of the breakout and be prepared for possible downside momentum in AUDUSD.