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AUD/USD at fresh 6 month lows on post FOMC dollar rush

The Australian dollar could  only temporarily materialize on good news coming out of China, and it’s on the back foot once again. 0.8950 is the new low.

The Aussie is surrendering to the strength of the greenback, that is enjoying a surge after the Fed decision and the accompanying  statement by Chair Yellen. What’s next?

0.8910 served as support in February and in March and is the next support line. It is followed by 0.8820, which capped the pair around the same time early in the year.

Below, we find 0.8730 as weak support, after it temporarily held the pair at that time. 0.8658 is the last line – this is the cycle low recorded in January.

For more levels, see the A$ forecast.  Here is the chart:

AUDUSD falling on Yellen technical daily chart September 18 2014 Aussie USD

But what exactly happened? Not that much: Yellen said that the Fed is  ending QE in October and there were two hawkish dissenters in the statement. These are marginal shifts to the hawkish side.

However, the market wants to buy US dollars  and wants to sell Australian dollars. And it had a good chance to the former.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.