The Federal Open Market Committee (FOMC) played its part in impacting the market, especially in relation to USD and other currency pairs. For the AUD/USD there appears to be an opportunity on the horizon as things have changed following this committee meeting.
The AUD/USD has recovered from its losses incurred during the FED induced fall post FOMC and has retraced to its previous support turned resistance swing high area which makes for a good shorting opportunity.
The level around $0.76 is a good area to short with a tight stop loss as both days last week saw price try to break above but failed on both attempts and price dropped lower, explains PrimeXBT Analyst Kim Chua.
The $0.76 level is also the neckline of the Head and Shoulders Top pattern that is showing on the AUD/USD daily, with the FOMC event having broken it once before. Now, the price has gone back for a retest of the resistance and provides an opportunity for traders who missed shorting it earlier another chance at a good entry point.
This retesting will be critical in how the market moves from here and while it is uncertain how things will react, the level seems like a prime opportunity and another good entry point for shorting.
I expect AUD/USD to retreat to at least $0.73 as $0.72 is the downside target for the Head and Shoulders Reversal. The AUD/USD looks to have topped out to me and more downside should be on the way, added Chua
About Kim Chua, PrimeXBT Market Analyst:
Kim Chua is an institutional trading specialist with a track record of success that extends across leading banks including Deutsche Bank, China Merchants Bank, and more. Chua later launched a hedge fund that consistently achieved triple-digit returns for seven years. Chua is also an educator at heart who developed her own proprietary trading curriculum to pass her knowledge down to a new generation of analysts. Kim Chua actively follows both traditional and cryptocurrency markets closely and is eager to find future investment and trading opportunities as the two vastly different asset classes begin to converge.
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