Daily chart of the Australian dollar / US dollar
This is quite classic, as the pair respects the key technical levels very well since trading last month. In every attempt to rise, the pair is located at a major resistance near 0.6800 from the 61.8 Fibonacci retracement level at 0.6790 in addition to the 100-day moving average (red line).
And on every attempt, buyers have failed to get through and that includes pushing higher earlier today. This is ahead of the current drop to 0.6730 as sellers start to pressure price action back towards the 200 day moving average (blue line) at 0.6723 instead.
A break below the last would see the sellers regain more momentum in an attempt to push more downside towards the March and April lows below 0.6600.
In the larger picture, you can see that the price action is clearly being contained by the key resistance area shown above and the mentioned support layers.
With the Fed now poised to head to the sidelines, the dollar may find it hard to gather any strong tailwinds moving forward. But at the same time more global economic worries are bad for the Aussie and risk too, so keep that in mind.
It’s pretty much a balancing act right now until the markets can find their feet.