AUD/USD Forex Technical Analysis – October 29, 2014 Forecast

After several days of consolidation and sideways trading, the AUD/USD finally broke out to the upside with an expanded range. The primary reason for the rally by the Aussie was a generally weaker U.S. Dollar ahead of today’s U.S. Federal Reserve Monetary Policy Statement.

The Fed is expected to announce the end to its quantitative easing program and leave interest rates unchanged. It’s not what the Fed is going to do that is important today, but what it says in the statement. Topics that may be mentioned include the effects of the weak Euro Zone economy on the U.S. recovery, the impact of the strong U.S. Dollar on the economy and falling energy prices as they pertain to inflation.

The nearest support today is an uptrending angle at .8822.

The daily chart indicates there is plenty of room to the upside as long as this price continues to hold. The first upside target is a main top at .8898. A trade through this price will turn the main trend to up on the daily chart and likely create enough upside momentum to challenge an uptrending angle at .9002 and a major 50% level at .90215.

The tone of the market today will be determined by trader reaction to the angle at .8822. Look for volatility late in the session since the Fed will release its statement at 2:00 pm EDT.