- AUD/USD pauses downside, remains capped below 0.77 handle, bias still bearish.
- Modest gains in the greenback ahead of Wednesday’s FOMC decision and staff projections keeping the pair dented.
- The slide in copper price continues to weight on the Australian dollar, adding further to the downside pressure.
- Technical studies are also bearish. We see scope for further downside.
- However, bullish divergence on RSI and Stochs keeps scope for upside in the pair.
- Immediate support is seen at 0.7665 (minor trendline), ahead of 0.7637 (78.6% Fib retrace of 0.75012 to 0.81358 rally).
- Upside remains capped at 5-DMA at 0.7720. Break above could see test of 200-DMA at 0.7804.
- Markets now focus on US Fed's interest rate decision along with Australian unemployment report for further impetus.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -45.3491 (Neutral), while Hourly USD Spot Index was at 48.082 (Neutral) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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