AUD/USD outlook: Aussie Dollar falls on post-Fed risk aversion
|AUD/USD
AUDUSD was down 0.7% in Asian/European trading on Thursday, extending post-Fed drop (falling in total 1.6% since FOMC announcement).
Fed’s hawkish hold, in which the central bank kept interest rates unchanged but signaled one more hike until the end of the year and likelihood of keeping high interest rates through 2024, sparked fresh risk aversion, prompting traders into dollar.
Technical structure on daily chart is weakening, following Wednesday’s strong upside rejection and formation of bull-trap pattern, as fresh acceleration lower already retraced over 61.8% of the recent 0.6357/0.6511 bull-leg).
Daily moving averages returned to bearish setup and 14-d momentum is heading deeper into negative territory, contributing to negative near-term signals.
Daily close below broken10DMA (0.6426) is needed to keep bears intact for renewed attack at near-term base at 0.6360 zone (2023 lows), violation of which would signal an end of a multi-week congestion and continuation of larger downtrend from 0.6894 (July 14 high).
Res: 0.6426; 0.6452; 0.6484; 0.6511.
Sup: 0.6380; 0.6357; 0.6272; 0.6210.
Interested in AUD/USD technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.