AUD/USD break still awaited as price action plays ping pong
Friday's downside move failed to hold a break below the 13 November low
On Friday, it seemed as though an imminent break was beckoning as equities sentiment remained sour but even so, it wasn't enough to drive sellers to hold a daily break below the 13 November low @ 0.7164. Given that, the level continues to act as a key support area for buyers to lean on as we begin the week.
Meanwhile, topside action will be met by resistance coming from the 100-day MA (red line) which sits at 0.7224 currently. These two levels will be the ones to watch out for in terms of any break out in AUD/USD for the short-term ahead of the FOMC meeting decision on Wednesday.
Hence, the ping pong analogy as price action will continue to bounce between these two levels unless buyers and sellers can find enough conviction for a break. Equities sentiment remains rather tepid as we begin the week but it's not anything terrible that we saw on Friday. That's helping to keep the aussie calm so far today.
Meanwhile, the dollar itself is largely expected to hold steady as markets turn their attention to the FOMC meeting to come later this week. A rate hike is pretty much expected and mostly priced in and as mentioned in many posts today, it's all about the Fed's language on future rate hikes.
That will be key in determining where the dollar will move and which side of the break AUD/USD will be aiming for when the time comes.