Source: PaxForex Premium Analytics Portal, Technical Insight

Yesterday evening, during an accompanying press conference on the results of the FOMC meeting on monetary policy, the Head of the Fed Fed J. Powell said:

• Household spending is recovering thanks to timely support for fiscal policy;

• Household expenses recouped about half the fall;

• There was strong employment growth in May/June;

• The contraction of the economy at the end of Q2 will be the largest in history;

• The Fed will do its best for as long as it needs to;

• The future dynamics of the economy are extremely uncertain;

• Recovery is unlikely until people feel safe;

• We see that the growth of new cases of the virus is putting pressure on the economy;

• We will use our tools, including swap lines until we are sure of the recovery;

• The Fed did not provide credit to the extent that it was originally planned;

• The markets worked again as soon as we announced the launch of certain credit programs, so we didn't have to use them. However, it's important that they stay on standby until the Central Bank is convinced that the economic downturn has been overcome;

• The current monetary policy is in line with the situation, but we are ready to adjust it as necessary;

• Additional fiscal support required;

• Overall, the data indicates a slowdown in the recovery rate;

• Further dynamics of the economy will largely depend on the development of the virus situation and the measures taken to contain it;

• A pandemic is a disinflationary shock. For a while, we're not going to fight inflation, but disinflationary pressure;

• We're not even thinking about raising the interest rate.

AUD/USD, 30 min

Pivot: 0.7179

Analysis:

Provided that the currency pair is traded above 0.7150 follow the recommendations below:

• Time frame: 30 min
• Recommendation: long position
• Entry point: 0.7179
• Take Profit 1: 0.7195
• Take Profit 2: 0.7220

Alternative scenario: 

In case of breakdown of the level 0.7150, follow the recommendations below:

• Time frame: 30 min
• Recommendation: short position
• Entry point: 0.7150
• Take Profit 1: 0.7125
• Take Profit 2: 0.7110

Comment:

RSI shows the possibility of ascending momentum during the day.

Key levels:

AUD/USD, D1

Pivot: 0.7172

Analysis:

While the price is above 0.6920 follow the recommendations below:

• Time frame: D1
• Recommendation: long position
• Entry point: 0.7172
• Take Profit 1: 0.7300
• Take Profit 2: 0.7390

Alternative scenario:

If the level 0.6920 is broken-down, follow the recommendations below.

• Time frame: D1
• Recommendation: short position
• Entry point: 0.6920
• Take Profit 1: 0.6780
• Take Profit 2: 0.6650

Comment:

RSI shows a bullish sentiment.

Key levels:

We also advise you to pay attention to the following currency pairs for intraday trading:

GBP/USD – buy above 1.2950 with 1.3015 and 1.3050 as Take Profit targets. Alternative scenario - if the level of 1.2950 is broken-down, you should consider selling with the targets 1.2910 and 1.2880 as Take Profit.
USD/CHF - short positions below 0.9155 with 0.9115 and 0.9095 targets as Take Profit. Alternative scenario - if the level of 0.9155 is broken-out, buy with the targets 0.9185 and 0.9210 as Take Profit.
EUR/USD - buy above 1.1750 with 1.1805 and 1.1830 targets as Take Profit. Alternative scenario - if the level 1.1750 is broken-down, sell with the TP 1.1720 and 1.1700.