- AUD/USD bears hold high as price finds key support,
- The bears are pricing in a breakout to test the critical structure to the downside.
The AUD/USD is under pressure even though the Federal Reserve is expected to signal a slower pace of tightening at its next meeting to assess the impact of its rate hikes on the economy. However, investors generally expect the Fed to raise its overnight benchmark rate by 75 basis points (bps) to a range of 3.75% to 4.00% this week, marking the fourth consecutive hike. Illustrated below is the technical picture for AUD/USD heading into the meeting.
AUD/USD H1 chart
The price accumulates at the tail end of the trend and is vulnerable to a move higher if the support structure holds over the course of the next day. If such a support zone is broken, the bears will be back in control and looking for a quick move to test the next layer of support on the way to the 0.63 figure.
AUD/USD daily chart
On the daily chart, the price has fallen heavily into the demand zone and there is prospect of a continuation to the downside as we head to the Fed in the next few hours, while on the backside of the daily trend line .
Source: Fx Street
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