The AUD/USD has been consolidating in October. Price has also started a congestion mode in the second half of the month. Ahead of tomorrow’s FOMC meeting, it seems like the AUD/USD is bullish, getting ready to make October’s action a price bottom.
The AUD/USD has turned a false break down last week to a bullish breakout of the symmetrical triangle. Price looks poised to test October’s consolidation high around 0.8895-0.89. However we should watch what happens after the FOMC meeting. A break above 0.89 should initiate the bullish correction scenario, making October’s action a price bottom. Then if price can hold above 0.88 after a pullback, we would have more reason to believe AUD/USD is in a bullish correction. A break below 0.8750 threatens to put away the bullish outlook, and a break below 0.87 might revive the prevailing downtrend before October.
Prevailing Post by Author: EUR/USD Jumps after Poor US Durable Goods Data; FOMC Ahead