AUD/USD Price Analysis: The pair is trading near a stubborn support zone

• AUD/USD is one of the worst-performing majors on Wednesday.
• The price has met some resistance at the top of a channel. 

AUD/USD 4-hour chart

The Australian dollar has been one of the worst-performing currencies in the G6 on Wednesday. The RBA was slightly more dovish than expected a few sessions ago and it seems to be having an effect on the AUD. The RBA AUD 57bn increase in size and extension of tenor of the TFF (Term Funding Facility) and the acknowledgement that the AUD is at relatively high levels was enough to send the currency lower.

Looking at the chart, the price has broken back below 0.74 and looks to be heading to 0.73 resistance zone which had just printed under a few minutes ago. The next key support is at the green line at 0.7275 and it would be interesting to see if the bears can take out the zone. Beyond that 0.7225 is also strong and a break of that level could lead to the channel low being tested.

The indicators are looking weak but the MACD signal lines are still above the mid-point. The histogram is red and although this is bearish it would be good to see the signal lines join them for confirmation. The Relative Strength Index indicators is firmly below 50 but a bullish failure swing is setting up. This could mean there is a small move up before the move down continues.

Overall it is too early to call this a change in trend in AUD/USD. A lower high is needed first and a break of the two aforementioned support zones could be a better indication. For now, the price is holding at the top of the channel and there could be a short term move back up.

Additional levels