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Sep 17, 2014
AUD/USD bears are in control again; 0.9060 support in sight
FXStreet (Moscow) - AUD/USD is reversing yesterday’s gains having opened marginally below 0.9100; the pair has dipped to 9070 amid positive USD dynamics across the board.
Sitting on the fence, waiting for FED
AUD/USD settled above 0.9000 pivot and even tried to break above 0.9100 on Tuesday as investors are hesitant to make new bets ahead of FOMC meeting results. This is one of the key risk events of the week that may trigger another period of high volatility. Markets are expecting more hawkish comments from FED, if the policy makers live up to their expectations, USD bulls would get another incentive to buy the currency. In this case AUD/USD may dip to new lows towards 0.9000 and then to 0.8989 (Tuesday’s low). Though it is worth noting that Aussie has already lost more than 300 pips and now it is vulnerable to the upside correction that could be triggered by less hawkish FED. On the intraday basis the upside is likely to be limited by 0.9100. Once this resistance is broken, 0.9143 will come into sight
What are today’s key AUD/USD levels?
Today's central pivot point can be found at 0.9066, with support below at 0.9018, 0.8941 and 0.8893 with resistance above at 0.9143, 0.9191 and 0.9268. Hourly Moving Averages are bearish, with the 200SMA bearish at 0.9173 and the daily 20EMA bearish at 0.9221. Hourly RSI is bullish at 55.
Sitting on the fence, waiting for FED
AUD/USD settled above 0.9000 pivot and even tried to break above 0.9100 on Tuesday as investors are hesitant to make new bets ahead of FOMC meeting results. This is one of the key risk events of the week that may trigger another period of high volatility. Markets are expecting more hawkish comments from FED, if the policy makers live up to their expectations, USD bulls would get another incentive to buy the currency. In this case AUD/USD may dip to new lows towards 0.9000 and then to 0.8989 (Tuesday’s low). Though it is worth noting that Aussie has already lost more than 300 pips and now it is vulnerable to the upside correction that could be triggered by less hawkish FED. On the intraday basis the upside is likely to be limited by 0.9100. Once this resistance is broken, 0.9143 will come into sight
What are today’s key AUD/USD levels?
Today's central pivot point can be found at 0.9066, with support below at 0.9018, 0.8941 and 0.8893 with resistance above at 0.9143, 0.9191 and 0.9268. Hourly Moving Averages are bearish, with the 200SMA bearish at 0.9173 and the daily 20EMA bearish at 0.9221. Hourly RSI is bullish at 55.