Australian Dollar Rally Stalls at Fibonacci Resistance

The Australian dollar has dropped 2.4% from its high and is heading for a third consecutive weekly decline, following a rally of more than 5.4%. The rally stalled at Fibonacci resistance, where three measures converge in a single zone: a 100% extension, a 61.8% retracement, and the median line of the current structure.

The reversal from that zone broke the Australian dollar's uptrend, which carried the rally, according to Michael Boutros, StoneX Media Senior Market Analyst. The Federal Reserve decision fueled the drop, with daily RSI momentum on the Australian dollar sitting at a multi-month low.

A key question for the Australian dollar is whether its current pullback turns into a deeper correction. A daily close below nearby support keeps the immediate downside bias in play, with the 200-day moving average and the 61.8% retracement of the rally marking the next major objective.