- AUD / USD has been on the defensive for most of Wednesday’s session amid a stronger risk-averse market / USD.
- However, the pair found strong support at 0.7640.
He AUD/USD has traded defensively so far on Wednesday, falling from Asian session highs above 0.7750, seen immediately after stronger-than-anticipated fourth-quarter CPI figures, to 2021 lows just below 0.7650 around the Start of US trading session Since then, prices have rebounded to 0.7680, with trades apparently making some gains on short positions ahead of Wednesday’s main event; The Fed will release the results of its latest FOMC monetary policy decision at 7:00 p.m. GMT, followed by a press conference on the decision with Fed Chairman Jerome Powell at 7:30 p.m. GMT.
Strong support at 0.7640
AUD / USD saw strong support when it fell to 0.7640. As the pair approached the 2021 low at 0.76422 and the December 17, 2020 high at 0.76396, buyers on the dips rushed in. In fact, some very interesting technical actions were seen; AUD / USD broke below an uptrend linking Jan 4, 18 and 26 lows around the start of the US session and the bears were obviously pointing to the short term downside at the 0.7640 area . Here, the short-term bears made a profit and the longer-term bulls jumped to spread. Markets will now ponder whether AUD / USD can rally towards daily highs at 0.7750. Much will depend on how the markets and the US dollar react at the FOMC meeting on Wednesday.
Four hour chart
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