Following yesterday's decision by the FOMC, the risk trade is firmly off. This is a trend I fully expect to continue over the short- and medium-term, barring central bank intervention, although some pullbacks (brief rallies in AUD/USD) could occur. Going forward, I am short AUD/USD from the 0.9820 level, and I find that selling in the 0.9820-0.9850 area looks promising on rebounds. With a floor in place just below 0.9740, drops below this look to extend losses towards multi-month lows.
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