AUD/USD price action continues to play ping pong
Price continues to struggle holding a break above the 0.7200 handle as offers and the 200-hour MA (blue line) continue to keep buyers in-check ahead of the Fed later today. And in failing to break above said level, the near-term bias remains undefined at the moment as price waffles between the two key hourly moving averages.
Looking at the daily chart, there is further topside resistance in the form of the 100-day MA (red line) @ 0.7220. Meanwhile, downside remains limited by the 13 November support @ 0.7164. That continues to define the price action we've been seeing so far this week: 0.7164 - 0.7200.
All eyes will now turn towards the Fed and Powell's press conference and the decision and language/tone set out will have strong repercussions for risk and the dollar. A dovish hike will prove to be a double-whammy for AUD/USD sellers and the key level to break above in terms of an upside move will be the 100-day MA @ 0.7220 followed by further daily resistance around 0.7284. After which, the September high @ 0.7317 comes into play next.
As for downside levels, it's all about that 13 November low @ 0.7164. If the Fed surprises and maintains a more neutral/hawkish tone, look out for a potential break there as it will open up a move for AUD/USD to retest the year's lows moving forward.
