On Monday, US President Trump nominated Jerome Powell to be Janet Yellen's successor as the chairman of the Fed. In general, the market took this news calmly, which even led to a small strengthening of the US dollar against main risk assets.
The Fed said that Yellen had applied for her resignation, which will come into force when her successor as chairman takes the oath. It also became known that Yellen will withdraw from the Board of Governors of the Fed.
For the time being, the acting Chairman of the Federal Reserve System drew attention to the fact that it was a great privilege and honor for her to serve in the FRS for three significant decades, and the reward is that currently the financial system is much stronger than it was a decade ago.
Yellen also said that maintaining progress will require constant monitoring of new threats to financial and economic stability.
In general, the technical picture did not undergo any changes in comparison with the morning forecast on Monday.
In order to develop the situation in favor of buyers of risky assets, it is necessary for the EURUSD pair to reach the intermediate level of 1.1772, which will allow a return towards the test at 1.1805 with an expectation of updating 1.1860 by the middle of the week.
Given that the pressure is maintained further, the retest at 1.1730 can easily lead to the growth of short positions in the single European currency as well as its collapse towards areas of 1.1680 and 1.1640.
The Australian dollar quietly reacted to the publication of the minutes from the last RBA meeting.
The minutes indicated that the RBA's position on monetary policy corresponds to the growth of the GDP and the target inflation rate. Furthermore, RBA experts expect a gradual increase in the level of inflation. However, the growth of the Australian dollar might be postponed at this moment.
The International Monetary Fund also announced that it expects interest rates in Australia to remain low for a long period of time, which in general, coincides with expectations of the Central Bank of Australia. Let me remind you that the RBA kept the rate at a record low level of 1.5% since August 2016, and it is expected that its increase will not begin until 2019.
As for the technical picture of the AUDUSD pair, after going beyond the large support level of 0.7630, the pressure on the Australian dollar increased, which led to the renewal of new large levels of 0.7530 with the formation of a forecast for the exit at 0.7500, where a significant profit taking on short positions will occur.
