#AUDUSD @ 0.66696 drops to its lowest level since June 2020 amid sustained USD buying. (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)]

• AUD/USD drops to its lowest level since June 2020 amid sustained USD buying.
• Aggressive Fed rate hike bets, the risk-off mood continues to underpin the buck.
• Bearish traders take a breather as the focus remains glued to the FOMC decision.

The pair currently trades last at 0.66696.

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 pair adds to the previous day’s losses and continues losing ground for the second straight day on Wednesday. Spot prices drop to the lowest level since June 2020, though find some support just ahead of the mid-0.6600s.

The strong US dollar buying interest remains unabated through the early European session amid hawkish Fed expectations and turns out to be a key factor exerting downward pressure on the AUD/USD pair. In fact, the US central bank is expected to deliver another supersized 75 bps rate hike at the end of a two-day meeting on Wednesday.

The markets have also been pricing in a small probability of a full 100 bps increase, which, along with the prevalent risk-off mood, continues to boost the safe-haven buck. Concerns about a deeper global economic downturn temper investors’ appetite for riskier assets and further contributes to driving flows away from the risk-sensitive aussie.

The anti-risk flow, meanwhile, triggers a modest pullback in the US Treasury bond yields and is holding back the USD bulls from placing aggressive bets. Traders also seem reluctant to place aggressive bets ahead of the key central bank event risk, which, in turn, offers some support to the AUD/USD pair and limits the downside, for the time being.

The fundamental backdrop, however, remains tilted firmly in favour of bearish traders and suggests that the path of least resistance for the AUD/USD pair is to the downside. Hence, any meaningful recovery attempt might still be seen as a selling opportunity and runs the risk of fizzling out rather quickly amid the underlying USD bullish sentiment.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6677 at the time of writing. Pair opened at 0.6689 and is trading with a change of -0.18 % .

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