The Fed's decision to raise its funds rate to 0.5% could form downside pressure on the US equities, as the Fed's weaker accommodative stance can undermine the assets price and slowdown the economic activity in US, while the higher USD yields can make it well-buoyed.
After having a higher low at 0.7095, AUDUSD could extend its rebound to be trading currently near 0.73 above the pair daily SMA50 and daily SMA100 but below its daily SMA 200 which is moving current above its resisting level at 0.7383 which stopped the pair on this Dec. 14.
This current rebound of AUDUSD made it trading above its daily Parabolic SAR (step 0.02, maximum 0.2) which is reading today 0.7158 in its eighth consecutive day of being below the trading rate.
AUDUSD daily Stochastic Oscillator (5, 3, 3) which is sensitive to the volatility is having its main line is in the overbought area above 80 referring to 87.832 and also its signal line which is reading now 83.734, despite easing of the rebound upside momentum with meeting 0.73.
Important levels: MA50 @ 0.7197, MA100 @ 0.7173 and MA200 @ 0.7410
S&R:
S1: 0.7095
S2: 0.7014
S3: 0.6933
R1: 0.7383
R2: 0.7494
R3: 0.7847
AUDUSDDaily chart:
