The AUDUSD approaches a key resistance at the 0.68 round number price level following a consistent climb since the start of June.
If the DXY continues to weaken, down to the key support level of 103, the AUDUSD could break above the immediate resistance level of 0.68 and rise toward the next resistance level at 0.6920.
However, the 0.68 resistance level is very crucial as the AUDUSD had previously reversed strongly from this level on the 14th April and 10th May.
A reversal could happen if the FOMC surprises markets with a rate hike.
In the more likely scenario, if the DXY weakens, look for the AUDUSD to break above the resistance level, and test the upward trendline again before continuing on to the next resistance level.
If the DXY continues to weaken, down to the key support level of 103, the AUDUSD could break above the immediate resistance level of 0.68 and rise toward the next resistance level at 0.6920.
However, the 0.68 resistance level is very crucial as the AUDUSD had previously reversed strongly from this level on the 14th April and 10th May.
A reversal could happen if the FOMC surprises markets with a rate hike.
In the more likely scenario, if the DXY weakens, look for the AUDUSD to break above the resistance level, and test the upward trendline again before continuing on to the next resistance level.
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