#AUDUSD @ 0.66596 US dollar remains firm on a quiet session ahead of the Fed. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• US dollar remains firm on a quiet session ahead of the Fed.
• Focus remains on the FOMC meeting; statement at 19:00 GMT.
• AUD/USD at the lowest level since May 2020.

The pair currently trades last at 0.66596.

The previous day high was 0.6748 while the previous day low was 0.6676. The daily 38.2% Fib levels comes at 0.6704, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.672, expected to provide resistance.

The AUD/USD failed to recover ground and printed a fresh two-year low at 0.6652. It is hovering around the lows as market participants look at the Federal Reserve.

The combination of a stronger US dollar supported by higher US yields and a cautious tone across financial markets, keeps the AUD/USD under pressure.

Stocks in the Wall Street are up 040% on average, but risk sentiment does not look so positive, particularly after Russian President Putin speech announcing partial military mobilization to fight Ukraine war and mentioned and threatened with a nuclear response.

The focus is set on the Federal Reserve that will announce its decision at 18:00 GMT. A 75 bps rate hike is expected. Chairman Powell’s press conference is at 18:30 GMT. A hawkish tone is priced in. US yields and the greenback have been rising prior to the event. The DXY is at multi-year highs above 111.00 and the 2-year yield is above 4.00% for the first time since 2007.

Economic data released on Wednesday showed the seventh consecutive monthly decline in US Existing Home Sales in August. The 0.4% slide pushed the annual rate to 4.7 million, better-than-expectations of a 4.8 million reading.

The AUD/USD continues under pressure. Below 0.6650, the next support might be seen at 0.6600 followed by 0.6580 and 0.6565. To alleviate the bearish pressure, the aussie needs to recover and remain above 0.6680. The next resistance is seen at 0.6730/35 followed by 0.6770.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.666 at the time of writing. Pair opened at 0.6689 and is trading with a change of -0.43 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6805, 50 SMA 0.6887, 100 SMA @ 0.6944 and 200 SMA @ 0.7103.

The previous day high was 0.6748 while the previous day low was 0.6676. The daily 38.2% Fib levels comes at 0.6704, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.672, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6661, 0.6633, 0.659
• Pivot resistance is noted at 0.6732, 0.6775, 0.6803

[/s2If]
Join Our Telegram Group