AUD/USD to suffer further weakness after rejection at the 0.7550 200-DMA – Commerzbank

FXStreet Insights Team FXStreet

AUD/USD has at last failed at the 200-day moving average (DMA) at 0.7550. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the aussie to decline to as low as 0.7171.

Above the 200-DMA lies the seven-month resistance line at 0.7605

“AUD/USD has finally failed at the 200-DMA at 0.7555, intraday Elliott wave counts have turned negative and we look for further weakness.”

“Dips should find interim support at 0.7427 the 4th August high and this guards the 55-DMA at 0.7347 then base of the channel at 0.7233 and the 29th September low at 0.7171.”

“Above the 200-DMA lies the seven-month resistance line at 0.7605. We will need to regain this zone for further upside impetus.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

Japanese Yen gains ground as traders await Fed rate decision

The USD/JPY pair loses ground to near 160.25 during the early European trading hours. Traders prefer to wait on the sidelines ahead of the US Federal Reserve interest rate decision under new Chair Kevin Warsh later on Wednesday.

AUD/USD stays pressured; holds above 0.7050 as traders await Fed decision

The AUD/USD pair struggles to capitalize on the previous day's hawkish Reserve Bank of Australia-inspired bounce and trades with a negative bias for the second consecutive day on Wednesday. Spot prices, however, hold above the 0.7050 level as traders opt to wait for the outcome of a two-day FOMC policy meeting before placing fresh directional bets.

Gold remains depressed but holds above $4,300 as traders seem hesitant ahead of Fed

Gold remains on the back foot heading into the European session, though it lacks follow-through selling and holds comfortably above the $4,300 mark. Traders now seem hesitant ahead of the highly anticipated FOMC policy decision, keeping the commodity below the weekly high.

DOGE near breakout, SHIB at its ceiling and PEPE leads meme coin recovery

Meme coins are approaching a key technical level, which could determine the next directional bias. Dogecoin struggles to overcome a major resistance level, and Shiba Inu recovery lost momentum near a crucial barrier. Meanwhile, Pepe extends its rally for a sixth straight day, raising the prospects of further upside if momentum persists.

Federal Reserve set to hold interest rates in Warsh's debut as chair

The United States Federal Reserve announces its interest rate decision on Wednesday, another pivotal meeting for markets to gauge the stance of policymakers and new Chair Kevin Warsh as energy prices retreat after the United States and Iran reached a framework deal to reopen the Strait of Hormuz.

Why a hawkish RBA is no longer enough to lift the Australian Dollar

The Reserve Bank of Australia delivered more than what markets expected: a hawkish hold that should have supported the Aussie. But markets widely ignored it, focusing instead on slowing economic growth and proving that central bank messaging alone isn’t always enough to drive currencies.