AUDUSD 0.7000 support held on Thursday after the pair swung between buyers and sellers following the prior session’s sharp drop.
Before the Fed rate decision on Wednesday, buyers had supported the pair near the rising 100-hour moving average at 0.7055 and the falling 200-hour moving average at 0.7042. However, a more hawkish tone from the Fed triggered a selloff. As a result, AUDUSD fell below both levels and shifted the near-term bias toward sellers.
The move down reached 0.6994. That break briefly pushed the pair under the 0.7000 mark and below the 61.8% retracement at 0.7002 from the rally off the late-March low. However, the pair then climbed back above 0.7000, and that area has since acted as support.
AUDUSD 0.7000 Support Faces Fresh Test
During Thursday’s Asian session, AUDUSD rebounded and moved back toward the falling 200-hour moving average at 0.7042. The pair touched 0.7041, but sellers defended that area. Meanwhile, the downside move later reached 0.70015, just under the 61.8% retracement at 0.70025, before buyers again steadied the market near 0.7000.
That leaves the pair stuck between clear support and resistance in the short term. For sellers, a break below 0.7000 that holds would strengthen control. In that case, last week’s low at 0.6978 becomes the next level in view, followed by a wider support zone from 0.6938 to 0.6962 that dates back to March.
Resistance Levels Cap the Rebound
For buyers, the first task is to retake the 200-hour moving average at 0.7042. They would then need to move above the 100-hour moving average at 0.7055. Notably, the 50% midpoint of the rally from the March low sits near that same area, which adds to its weight.
If buyers clear those levels, the next upside target is the 100-day moving average at 0.7083. For now, AUDUSD 0.7000 support remains the key floor, while resistance near the 200-hour moving average continues to limit gains.
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