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AUD/USD shorts held up ahead of the FOMC

FXStreet (Guatemala) - AUD/USD is trading at 0.9025, down -0.76% on the day, having posted a daily high at 0.9097 and low at 0.9017.

AUD/USD has moved into oversold territory according to the hourly FXStreet OB/OS Index. However, on further legs down, and there are plenty of potential catalysts coming up this week left that will impact traders motivation around the greenback, Karen Jones, chief analyst at Commerzbank suggested that below 0.8960 we look for another leg down to the 0.8840/78.6% retracement of the move seen this year. The next key event ahead is of course the FOMC.

FOMC coming up and Yellen speech tomorrow

Analysts at RBS explained that their base case leans toward the Fed making few substantive changes to the key language and forecasts, would be an immediate dovish disappointment USD longs in FX. “However, we anticipate investors quickly using any weakness in the USD on a less hawkish stance today to position for a more hawkish message tomorrow”.

AUD/USD near term levels

With spot trading at 0.9025, we can see next resistance ahead at 0.9054 (Hourly 100 SMA), 0.9060 (Hourly 20 EMA) and 0.9066 (Daily Classic PP). Support below can be found at 0.9018 (Daily Classic S1), 0.8989 0.8941 (Daily Classic S2) and 0.8920 (Weekly Classic S1).

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