- AUD/USD consolidates before the next push higher.
- Technical set up on the hourly chart favors further upside.
- All eyes remain on the Fed Chair Powell’s Jackson Hole speech.
AUD/USD is trading modestly flat below 0.7250 in early Europe, having hit a fresh six-day high at 0.7251 earlier in the Asian session.
The bulls have taken a breather and await fresh impetus from the US Federal Reserve (Fed) Chairman Jerome Powell’s speech, scheduled at 1310 GMT, at the Jackson Hole Symposium.
Despite the quiet trading, the bias around the spot remains to the upside, in light of a golden cross spotted on the hourly chart early Thursday. The 50-hourly Simple Moving Average (HMA) has crossed above the 200-HMA yielding a bullish crossover.
Also, the fact that the price holds above the upward-sloping 21-HMA at 0.7228 adds credence to the brighter outlook for the aussie.
Therefore, the buyers look to the August 19 high of 0.7276 on a breakthrough the daily high. The 0.7300 round figure could be tested subsequently. The hourly Relative Strength Index (RSI) lies comfortably above the midline, into the bullish region.
Should the bulls fail to resist above the 21-HMA, a sharp drop towards the 0.7200 level cannot be ruled out. That area is the confluence of the 50 and 200-HMAs.
The next cushion is seen at the horizontal 100-HMA at 0.7188.
AUD/USD: HOURLY CHART