AUD/USD Price Analysis: Holds gains but struggles at 0.6800, ahead of FOMC’s decision

• Following a three-candle morning star pattern, further upside for the AUD/USD pair is expected, though pending Federal Reserve decisions could hinder this.
• Resistance is seen at 0.6800, with further obstacles at the July 20 high of 0.6846, the July 14 high of 0.6894, and the February 21 high of 0.6919.
• On the downside, initial support lies at the confluence of the 20- and 200-day EMA around 0.6752/51.

AUD/USD begins Wednesday’s Asian session with a minimal loss of 0.08% following a positive Tuesday’s session that witnessed the pair gaining 0.78% but failing to climb above the 0.6800 figure after bouncing from a daily low of 0.6725. As of writing, the AUD/USD exchanges hands at 0.6787.

AUD/USD Price Analysis: Technical outlook

In the last couple of days, after tumbling to a new two-week low of 0.6714, the AUD/USD stages a comeback following the formation of a three-candle morning star, warranting further upside is expected. However, fundamental news, mainly the US Federal Reserve (Fed) monetary policy decision looming, could negate its validity if Fed Chair Jerome Powell and Co. give a hawkish signal that could boost the greenback.

If AUD/USD extends its gains past 0.6800, the next resistance would be the July 20 daily high of 0.6846, followed by the July 14 high of 0.6894. A breach of the latter will expose the February 21 high at 0.6919, followed by the 0.7000 mark.

Conversely, if AUD/USD reverses its course, the first support to test would be the confluence of the 20-and 200-day EMA at around 0.6752/51. Once cleared, the next support would be the July 25 low of 0.6725, followed by the weekly low of 0.6714, with further downside risks emerging at 0.6700,

AUD/USD Price Action – Daily chart