AUD/USD bullishly configured ahead of Fed´s rate decision

• The FOMC is coming up next at 18.00 GMT.
• AUD/USD bulls probe 0.7700 ahead of FOMC.

The AUD/USD is currently trading at around 0.7704 up 0.28% on Wednesday as the market is patiently waiting for the FOMC´s meeting outcome with the rate decision and most importantly clues signaling that the Fed might hike at least four times in 2018. Any hint that the Fed is considering only three rate hikes might be seen as UD dollar negative according to some analysts. Whatever happens, fasten your seatbelts as volatility is expected across the board. 

Earlier in the week the RBA minutes didn’t provide much new to what the market already knew, saying: “GDP growth is expected to exceed potential growth over 2018, further progress on jobless rate, and CPI to likely be gradual. Yet, household spending and wage growth outlook are still uncertain, warranting careful monitoring"

AUD/USD daily chart

The AUD/USD is forming a wedge pattern which started at the start of the year. The market is currently consolidating above the lower trendline after the Aussie fell 240 pips in the last six days. Although the bear move was sharp, the technical picture is somewhat favorable for bulls for at least a rebound to 0.7770 previous swing low. Both RSI and MACD are bearishly configured while the Aussie is trading below both its 100 and 200-period simple moving averages. 

AUD/USD 4-hour chart

The technical picture for bulls on the 240-minute chart seems rather constructive for bulls. The bears did manage to break below the previous swing low (March, 1) but only did so by a mere 35 pips before the buyers stepped back in and pushed the market above the 0.7700 psychological mark. Both RSI and MACD are bullishly configured. As mentioned above, to the upside resistance is seen at 0.7770, followed by 0.7900 while support is seen at the cyclical low 0.7677, followed by the 0.7600 and 0.7500 figures.