AUDUSD is trading just above 0.7050 very close to our first target of 0.70 we gave a few weeks ago when the reversal candlestick pattern formed back when price was trading around 0.7460. Short-term trend remains bearish. However this is a FOMC week and traders need to be very cautious as volatility is expected to rise after the FOMC.
The first couple of sessions of the week are expected to be with low volatility as I can see most people are having a neutral stance against the pair, waiting for the FOMC decision. Trend remains bearish but as price approaches the major December and January lows, the chances for a strong bounce increase. Traders need to be very cautious. Failure to hold above 0.70 will be a major bearish signal. As we said a few weeks ago at the reversal, potential for AUDUSD is to move towards 0.66.
