After the hawkish FOMC statement during the 1/28 session, the USD started to climb mostly across the board. The AUD/USD was very clearly under pressure and fell into new lows on the year. Let’s take a look at the charts to see where AUD/USD might be heading to.
The AUD rallied to 0.80 ahead of the FOMC meeting (1/28) and fell to below 0.78 by the 1/29 US session. This leaves the 0.79 area as a possible resistance against a subsequent pullback.
When we look at the monthly chart, we can see some further room to fall until the 61.8% retracement level around 0.72. A little lower, there is a rising trendline coming up from the 2001 low at 0.4814, which should reinforce the psychological level of 0.70. Therefore, AUD/USD has downside risk at the moment limited to the 0.70-0.72 area, but this is still a long way to go from 0.7750, where AUD/USD is trading today (1/29).
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