#AUDUSD @ 0.66590 oscillates in a narrow trading band as traders move to the sidelines ahead of the Fed. (Pivot Orderbook analysis)
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER 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_level1)]
- AUD/USD oscillates in a narrow trading band as traders move to the sidelines ahead of the Fed.
- The RBA’s surprise rate hike continues to underpin the Aussie and acts as a tailwind for the pair.
- The ongoing USD pullback from a three-week high further contributes to limiting the downside.
The pair currently trades last at 0.66590.
The previous day high was 0.6717 while the previous day low was 0.662. The daily 38.2% Fib levels comes at 0.668, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6657, expected to provide support.
The AUD/USD pair struggles to gain any meaningful traction on Wednesday and seesaws between tepid gains/minor losses, just above mid-0.6600s through the early part of the European session.
The Australian Dollar (AUD) continues to draw some support from the Reserve Bank of Australia’s (RBA) surprise 25 bps rate hike on Tuesday and a more hawkish outlook. This, along with the ongoing US Dollar (USD) retracement slide from a three-week high touched the previous day, acts as a tailwind for the AUD/USD pair. The overnight release of the US Job Openings and Labor Turnover Survey (JOLTS) indicated that the ultra-tight US job market is loosening. Apart from this, concerns over the US debt ceiling and renewed fears of a full-blown banking crisis drag the Greenback lower for the second straight day.
Apart from this, a modest recovery in the US equity futures undermines the safe-haven buck and benefits the risk-sensitive Aussie. The upside for the AUD/USD pair, however, remains capped as traders seem reluctant to place aggressive bets ahead of the highly-anticipated FOMC monetary policy decision, due to be announced later during the US session. The Federal Reserve (Fed) is widely expected to hike rates by 25 bps, though investors seem divided over the possibility that the Fed will announce a pause in its rate-hiking cycle as inflation is still trending well above the central bank’s target range.
Hence, the focus will be on the accompanying monetary policy statement and Fed Chair Jerome Powell’s comments at the post-meeting press conference, which will be scrutinized for clues about the future rate-hike path. This, in turn, will play a key role in influencing the near-term USD price dynamics and provide some meaningful impetus to the AUD/USD pair. Heading into the key central bank event risk, traders on Wednesday might take cues from the US economic docket – featuring the release of the ADP report on private-sector employment and the ISM Services PMI – to grab short-term opportunities.
Technical Levels: Supports and Resistances
AUDUSD currently trading at 0.6661 at the time of writing. Pair opened at 0.6663 and is trading with a change of -0.03 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 0.6661 |
| 1 | Today Daily Change | -0.0002 |
| 2 | Today Daily Change % | -0.0300 |
| 3 | Today daily open | 0.6663 |
The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6678, 50 SMA 0.6688, 100 SMA @ 0.679 and 200 SMA @ 0.6734.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 0.6678 |
| 1 | Daily SMA50 | 0.6688 |
| 2 | Daily SMA100 | 0.6790 |
| 3 | Daily SMA200 | 0.6734 |
The previous day high was 0.6717 while the previous day low was 0.662. The daily 38.2% Fib levels comes at 0.668, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6657, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 0.6616, 0.657, 0.652
- Pivot resistance is noted at 0.6713, 0.6764, 0.681
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 0.6717 |
| Previous Daily Low | 0.6620 |
| Previous Weekly High | 0.6706 |
| Previous Weekly Low | 0.6574 |
| Previous Monthly High | 0.6806 |
| Previous Monthly Low | 0.6574 |
| Daily Fibonacci 38.2% | 0.6680 |
| Daily Fibonacci 61.8% | 0.6657 |
| Daily Pivot Point S1 | 0.6616 |
| Daily Pivot Point S2 | 0.6570 |
| Daily Pivot Point S3 | 0.6520 |
| Daily Pivot Point R1 | 0.6713 |
| Daily Pivot Point R2 | 0.6764 |
| Daily Pivot Point R3 | 0.6810 |
[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group
