AUD/USD takes a breather ahead of FOMC decision

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 28, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Córdoba) - The Australian dollar seems to have found an interim support as investors continue to digest lower-than-expected Aus CPI figures and gear up for the Federal Reserve policy announcement.

    AUD/USD bottomed out at 0.7110 after falling nearly 90 pips on the back of inflation numbers, but managed to stabilize in a range over the last hours as markets entered a wait and see mode. At time of writing, AUD/USD is trading at 0.7130, % below its opening price.

    AUD/USD technical view

    From a technical view, Valeria Bednarik, chief analyst at FXStreet, notes that AUD/USD bearish potential is still strong in short-term charts, having corrected from oversold readings.

    AUD/USD levels to watch

    In terms of technical levels, next supports are seen at 0.7110/06 (Oct 28 low/61.8% Fibo retracement of 0.6939-0.7381) and 0.7065 (Oct 6 low). On the other hand, resistances could be faced at 0.7206 (Oct 28 high/21-day SMA), 0.7295 (Oct 23 high) and 0.7312 (100-day SMA).
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