AUD/USD meets strong area of resistance ahead of FOMC

By FXStreet FXStreet (Guatemala) – AUD/USD is currently trading at 0.7188 with a high of 0.7197 and a low of 0.7123.

AUD/USD has started to consolidate the upside after the pair rallied away from the supporting 50 SMA on the hourly chart and extends the gains made from the recovery at the 0.6900 level and eyes the 0.72 handle. Copper, Gold and oil have been strong performers and risk is on with the S&P performing strongly as well ahead of the Fed’s decision tomorrow.

AUD/USD running into tough resistance

Technically, the 0.72 handle may prove to be a tough area as explained by Karen Jones,chief analysts at Commerzbank who suggested rallies could be capped at 0.7205 (last weeks high). Failure here should provoke a retest of the 0.7050 support.

“Below 0.7050 will alleviate immediate upside pressure and retarget the .6905 recent low and then .6774 the 2004 low longer term. We note the 13 count on the 240 minute chart and this adds weight to the idea of failure here.”
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Source:: FX Street