AUD/USD defends key support after trendline break, FOMC decision next

AUD/USD is trading lower this week after breaking below a rising trendline, but sellers have so far failed to extend the decline through a key support area, leaving the pair boxed between defined technical boundaries. The loss of trendline support removed the short-term bullish bias, yet the failure to close decisively below the support zone signals that dip buyers remain active and that the move lower lacks conviction. For sellers, a sustained break and hold beneath the support band is required to confirm downside continuation and open the path toward the next lower targets. For buyers, reclaiming the broken trendline and pushing back above nearby resistance would neutralise the bearish break and restore upside momentum. Until one of those levels gives way, range-bound price action is the base case. The Federal Reserve rate decision is the primary catalyst, with the accompanying statement and guidance on the policy path likely to determine which side of the range breaks. Traders should manage position size into the announcement given the risk of a volatility spike and a false break in either direction.