AUD/USD: 0.7100EUR/USD: 1.0660For the most-part it has been a steady session as traders waited on the outcome of the FOMC Minutes. Their release, late in the day – leaving the chance for a December rate hike firmly on the table - has caused some minor volatility in the currency markets but, at the end of the session most of them remain in the middle of their day’s range. Commodities (Gold/Silver) remain quiet but heavy, while stock markets have closed on their highs. WTI traded below $40.00 pb but has since made a minor recovery. Today will be the turn of the ECB to release their own Minutes, which are likely to keep the Euro under pressure. Before then the BOJ Interest Rate Decision is due – No change expected.
AUDUSD has largely ignored the FOMC Minutes and currently sits at 0.7090 leaving the technical points mostly intact after a range today of 0.7067/0.7117.
With no local data due today it could be another rangebound session of using 0.7100 as a pivot, with the momentum indicators giving little hint of any imminent directional move.
If the Aud does come under pressure, buyers will gather once again at 0.7065/70, below which would head towards 0.7050 and then to the 0.7015/20 area which has recently provided decent support, although this seems unlikely today. Below there, further bids will arrive at 0.7012 (76.4% of 0.6900/0.7381) and then 0.7000. A break of this would then open the way for a steeper decline towards 0.6936 (29 Sept low) and to 0.6900 (4 Sept low) although at this stage this seems unlikely to be seen for a while.
To the topside, a move back above 0.7100, which looks quite likely, would again see sellers at 0.7115/20, where the descending trend resistance now lies, above which could head on towards the previous session high of 0.7040. Above here seems unlikely today, but if wrong, we could see a run towards last Friday’s high (0.7158), and potentially towards 0.7195 (50% of 0.7381/0.7015). Above 0.7200 would head on towards 0.7210 (descending trend resistance), 0.7223 (4 Nov high) and to 0.7240 (61.8%) but seems unlikely to be seen for a while.
Jim LanglandsFX Charts
