AUD/USD Price Analysis: Holds gains but struggles at 0.6800, ahead of FOMC’s decision

Following a three-candle morning star pattern, further upside for the AUD/USD pair is expected, though pending Federal Reserve decisions could hinder this.
Resistance is seen at 0.6800, with further obstacles at the July 20 high of 0.6846, the July 14 high of 0.6894, and the February 21 high of 0.6919.
On the downside, initial support lies at the confluence of the 20- and 200-day EMA around 0.6752/51.

Christian Borjon Valencia FXStreet

AUD/USD begins Wednesday’s Asian session with a minimal loss of 0.08% following a positive Tuesday’s session that witnessed the pair gaining 0.78% but failing to climb above the 0.6800 figure after bouncing from a daily low of 0.6725. As of writing, the AUD/USD exchanges hands at 0.6787.

AUD/USD Price Analysis: Technical outlook

In the last couple of days, after tumbling to a new two-week low of 0.6714, the AUD/USD stages a comeback following the formation of a three-candle morning star, warranting further upside is expected. However, fundamental news, mainly the US Federal Reserve (Fed) monetary policy decision looming, could negate its validity if Fed Chair Jerome Powell and Co. give a hawkish signal that could boost the greenback.

If AUD/USD extends its gains past 0.6800, the next resistance would be the July 20 daily high of 0.6846, followed by the July 14 high of 0.6894. A breach of the latter will expose the February 21 high at 0.6919, followed by the 0.7000 mark.

Conversely, if AUD/USD reverses its course, the first support to test would be the confluence of the 20-and 200-day EMA at around 0.6752/51. Once cleared, the next support would be the July 25 low of 0.6725, followed by the weekly low of 0.6714, with further downside risks emerging at 0.6700,

AUD/USD Price Action – Daily chart

AUD/USD

Overview
Today last price	0.6789
Today Daily Change	0.0050
Today Daily Change %	0.74
Today daily open	0.6739

Trends
Daily SMA20	0.6721
Daily SMA50	0.6692
Daily SMA100	0.6687
Daily SMA200	0.672

Levels
Previous Daily High	0.6756
Previous Daily Low	0.6715
Previous Weekly High	0.6854
Previous Weekly Low	0.6722
Previous Monthly High	0.69
Previous Monthly Low	0.6484
Daily Fibonacci 38.2%	0.674
Daily Fibonacci 61.8%	0.6731
Daily Pivot Point S1	0.6718
Daily Pivot Point S2	0.6696
Daily Pivot Point S3	0.6676
Daily Pivot Point R1	0.6759
Daily Pivot Point R2	0.6778
Daily Pivot Point R3	0.68

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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