The Fed was very busy yesterday with speeches from Fed members. Market participants expected comments that would instill some dollar strength after the failure of the GOP health resulted in uncertainties around the dollar. This raised questions about the President’s ability to cut taxes and increase spending. The fiscal uncertainty remains to be something that market participants are taking note of. Amid all this, we still had the fed maintain their modest hawkish bias. Fischer mentioned that two more hikes this year seem right though their approach would be different considering tax cuts and infrastructure spending plans.

AudUsd Daily Chart

Price opened within a bear area zone , between MM3 and MPP, at the beginning of the month. We saw the monthly bear target being achieved earlier during the month and price retracing all the way up to 0.7750. Even though the market action moving averages are flat, price might be making a lower high at 0.76500 at the monthly pivot which also coincides with the 38.2 fib level.

AudUsd H4 Chart

Pivot cluster between the weekly pivot and monthly pivot has been vital this week and holding strongly. With price being at resistance, I will be looking for selling opportunities around that area (0.76500)

AudUsd H1 Chart

Another selling opportunity would present itself should price breakthrough the daily pivot and the market action moving averages and find support at DM2. A retest at the role reversal (DPP) is where I would possibly sell.

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