AUDUSD Key Levels in Focus Ahead of Fed Decision

The AUDUSD boasts some of the best technical levels right now. And apart from the choppy price action in February, the last few months have produced some nice swings as well.

As we move into the final hours before today’s highly anticipated Fed rate decision, I wanted to highlight a few levels I’m watching. Do note, however, that I won’t be doing anything with the U.S. dollar until the dust settles from today’s events.

With that out of the way, let’s get to it.

The first level of interest is 0.7500. This area attracted buyers on Friday and has also served as a pivot since March of last year. Before Friday the pair had been in a relatively bearish slide but has since bounced 100 pips.

That brings us to the resistance level that is just above current prices. The 0.7608 handle has been on our radar for weeks. In fact, the March 7th retest of the area produced a bearish pin bar, which I commented on and also traded for a quick 100 pip profit.

Now, should the pair break to the upside following today’s FOMC, the next key level of resistance comes in near 0.7700. This area includes several highs from last year as well as the trend line from April.

Alternatively, if the U.S. dollar strengthens and the AUDUSD manages a close below 0.7500, the next support level rests at 0.7405. A close below that would expose the 0.7300 area.

You can probably see a pattern here. It doesn’t always pan out this way, but the AUDUSD seems to be favoring round numbers lately.

Today’s main events kick off at 2 pm EST. As mentioned above, I’ll be a spectator for the remainder of the day as market conditions will inevitably deteriorate in the final three hours of the session.

With that said, it’s always a good idea to have levels marked before such events.

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