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AUD/USD reaches fresh 3-week high

FXStreet (Córdoba) - AUD/USD pushed higher and reached its highest level in 3 weeks as the mild risk-on mood continued to support the Aussie.

AUD/USD stretched to a fresh high of 0.8885 but the move lacked follow-through as investors remain cautious ahead of the Federal Reserve decision. The Fed is expected to end its QE program but it is unlikely to mention a specific timeline for any eventual rate hikes.

AUD/USD will likely extend its consolidative path heading into the decision, with 0.8900 as next bullish target. At time of writing, AUD/USD is trading at 0.8880, recording a 0.32% gain on the day.

AUD/USD technical levels

As for technical levels, AUD/USD could find immediate resistances at 0.8885 (intraday high), 0.8898/0.8900 (Oct 9 high/psychological level) and 0.8926 (Sept 23 highs). On the other hand, supports are seen at 0.8848 (Oct 29 low), 0.8793 (10-day SMA), 0.8780 (21-day SMA) and 0.8742 (Oct 22 low).

AUD expected to remain bullish - UOB Group

The Market Strategy Team at UOB Group suggest that AUD/USD should continue its upmove today.
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