- AUD/USD gains strong positive traction and climbs to fresh weekly tops.
- Further gains are likely to remain capped ahead of the FOMC decision.
The AUD/USD pair built on its goodish intraday positive move and climbed to fresh weekly tops, around the 0.6840 region in the last hour, closer to 50% Fibonacci level of the 0.6930-0.6754 downfall.
A sustained move above the 0.6820 support-turned-resistance, coinciding with 38.2% Fibo. level and some follow-through buying beyond 100-hour SMA was seen as a key trigger for bullish traders.
Meanwhile, technical indicators on 4-hourly/daily charts maintained their bullish bias and support prospects for additional gains, though a goodish pickup in the USD demand might cap further gains.
Moreover, oscillators on the daily chart have moved on the verge of breaking into the overbought territory and further warrant some caution before placing any aggressive bullish bets.
Hence, a subsequent positive move seems more likely to confront a stiff resistance near 61.8% Fibo. level, around the 0.6860-65 region, ahead of the highly anticipated FOMC monetary policy update.
A convincing breakthrough might negate any near-term bearish bias and set the stage for a move towards reclaiming the 0.6900 handle en-route the recent swing highs, around the 0.6925-30 region.
On the flip side, immediate support is now pegged near the 0.6830 region (100-hour SMA), which if broken might accelerate the slide back towards challenging the 0.6800 round figure mark.
AUD/USD 1-hourly chart
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