AUDUSD: Aud higher after dovish FOMC minutes. 0.7850+ ahead? by FX Charts

Having reached 0.7830 in Asia, with the Japan Post-Australia Toll Holdings M&A underpinning the Aud, it then drifted steadily lower through the Europe/US sessions, sitting at the lows of the day at 0.7775 ahead of the FOMC minutes. This turned round abruptly after the dovish minutes release and saw a spike back to new session high at 0.7837, before finishing the US session at 0.7820.I t would be of little surprise if, in the absence of China for the NY celebrations or any local data, to see the Aud continue to sit around here, underpinned by shorts looking to trim their positions, but with sellers also lining up in the 0.7830/50 area.

The soft tone of the US$ does look as though it could continue, in which case, if the offers can be taken out, then above 0.7850 would head towards the 6 Feb top at 0.7876, which should be strong resistance. Above here, we could be in for a run towards 0.7895 (23.6% of 0.8794/0.7625) and then to the 50% pivot of 0.8230/0.7625 at 0.7925, above which could then see a run back towards the Fibo resistance at 0.7995 (61.8% of 0.8230/0.7625).

Back below 0.7800 will find bids at the session low (0.773) and at 0.7760, although I would be surprised to see it down here today. If wrong then Tuesday’s brief low at 0.7740 would come into view, below which 0.7720/25 will be the next support ahead of 0.7700. Under there would find minor support at 0.7665/70 and then at last Thursday’s session low of 0.7643.

Look for a 0.7785/0.7950 type day.

Economic data highlights will include:

China NY.

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