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    AUD/USD Slides to 0.7650 from 0.7840 In Europe Thursday Morning

     

    AUD.3.18 resized 600

    Chart: WorldWideMarkets Alpha Trader

    The Australian Dollar rose to the intraday high of 0.7846 in yesterday's wild New York session following the FOMC announcement at 18:00 GMT. After easing down to 0.7740, the Asian market took the rates higher again to 0.7810 on a second wave of buying interest against the dollar. (00:40am GMT).

    However, we now see a drastic reversal of direction of the AUDUSD rate when a combination of selling interest, profit-taking and sell-stops commenced when the Asian Market came in.

    The European market also came in with the same selling interest to push the rate lower to the intraday low of 0.7654. (8:30am GMT Thursday)

    The irony is, these are almost the same levels before the FOMC announcment. The rapid gains were all too fleeting and unsustainable - only a mere 14 hours ago. The US dollar is still remaining defiantly firm across the board despite the bearish tone of the Fed yesterday.

    The prior FOMC monetary policy announcement however dovish, remains at odds with most other Central Banks engaged in what some analysts might perceive as a currency war. 

    The 14-day moving average displays a double-top formation at 0.7780 and fell to 0.7675. The immediate 14 DMA supports are 0.7620 and 0.7600.

    0.7620 is also the ending line of the channel with the peaks decending from 0.7800.

    Fibonacci Arc Reversals: 0.7720 (38.2%), 0.7743 (50%), 0.7763 (61.8%)

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