Australian Dollar Rally Halted by Fibonacci Resistance

The Australian dollar's recent rally has come to an abrupt end after it stalled at a key Fibonacci resistance zone, where three different measures converged. The zone included a 100% extension, a 61.8% retracement of the decline from the 2021 highs, and the median line of the current structure.

The reversal from this zone has not only halted the uptrend but also led to a third consecutive weekly decline for the Australian dollar. This drop is significant, as it comes after a rally of over 5.4% before stalling at the Fibonacci resistance zone.

According to Michael Boutros, StoneX Media Senior Market Analyst, the daily RSI momentum on the Australian dollar has reached a multi-month low, indicating a strong downtrend. The Federal Reserve's decision also contributed to the drop in the Australian dollar.