- AUD/USD is now trading just under flat after the FOMC statement and press conference.
- The price has printed below the hourly chart trendline and could continue to fall.
The Fed statement didn't really give us much to be honest but the USD bears could be disappointed that there has been no indication of more action from the Fed. One main takeaway from the developments at the bank is that some FOMC members do not see rate rising till 2023. This could be longer than some analysts had been anticipating. This could be due to the fact that the Fed stated they will not raise rates until full employment is reached. There were no specifics in terms of what percentage that is. The Fed used to have an inflation target of 2% and now they have explained that they are willing to accept an overshoot.
AUD/USD 1-hour chart
The price has moved lower recently but the area in which the trendline and support level meet could be strong in the short term. A move higher will only be taken seriously if the double top at 0.7340 is broken. The market has been making higher highs and higher lows but the previous wave low was been broken but only slightly.
Both MACD and Relative Strength Index indicators are in a bearish position right now. Having said that, the Relative Strength Index has produced a bullish failure swing. This is when the price makes a higher low but the indicator makes a lower low. This is normally a bullish sign.
Something tells me the market will need the dust to settle before deciding on an underlying direction. The Fed had the opportunity to let the public know if more stimulus was coming. Instead, they once again asked for more fiscal stimulus from the government. This could be bullish for the greenback.
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.