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    AUD/USD: rallies on dovish Fed

    AUD/USD ran higher on the dovish Fed. AUD/USD rallied from 0.7417 lows and reached 0.7446.Fed stays on hold, dot plot shows six members expect one rate this yearThe Fed have turned very dovish and have said that the jobs market should improve over the next couple of years, expecting inflation to rise to 2% over the next 2-3 years. The dot plot has been reduced significantly and there was no mention of July as being an appropriate time to move. AUD/USD levelsAUD/USD is supported by the 200 sma on the 1hr sticks at 0.7400 while targeting a break of the 0.7463/91 zone, being the 50% retracement and the 55 day ma. "We continue to suspect that the market has charted an interim peak at 0.75035. However, a move back below the 0.7381 October 2015 high will be needed to cast attention back to the 200 day ma at 0.7271. Above 0.7505 will see a deeper retracement to 0.7572 and potentially 0.7688, the 78.6% retracement of the sell-off from April (not favoured)," explained analysts at Commerzbank. 

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