© Dukascopy Bank SA
"Rather than trying hard to take new positions at times like this, investors are saving their energy until the main events."
- Mitsubishi UFJ Morgan Stanley(based on Bloomberg)
Pair's Outlook
AUD/USD is currently eroding the 55-day SMA and weekly S1 at 0.7160. Unless today's FOMC statement is surprisingly hawkish, the pair has a good chance of rebounding in the short run. The gains are to be contained by a cluster of resistances circa 0.7230. If supply here proves to be insufficient, we have the 100-day SMA at 0.7310 that stopped strong advancement in the recent past. In the perspective of the next several weeks, we expect the price to come close to retesting this year's lows at 0.69.
Traders' Sentiment
We continue to observe preponderance of bulls in the market: they take up almost three fourths of it. Meanwhile, two thirds of orders set 100 pips away from the spot are to sell the Aussie.
© Dukascopy Bank SA