AUD/USD setting up for a rally on dovsih FOMC?

By FXStreet FXStreet (Guatemala) – AUD/USD has found a bid back onto the 0.70 handle. The pair has been caught in a tight range since the break of the double top last week and since finding territory on the 0.70 handle only to lose its footing there with a lack of follow through while markets have remained cautions in light of China and commodity prices.

We now get set for the FOMC. The likely outcome is that the Fed will not hike and the statement will be dovish given the scale of global tensions from China to the price of oil. That should allow for risk-on and a higher price in the Aussie.

AUD/USD levels

Today, AUD/USD now targets the 200 sma at 0.7107, but needs to clear through 0.7047 and the daily 20 sma guarding Jan 7th 0.7075 high. To the downside, the previous daily low was 0.6875. A break below 0.6827 leaves the downside wide open and bear trend in tact.
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Source:: FX Street