AUD/USD chart - Trading View
AUD/USD was trading 0.19% higher on the day at 0.7271 at around 02:30 GMT, outlook bullish.
In his speech at the Jackson Hole Monetary Policy Symposium, Fed chair Jerome Powell confirmed policy makers intention to adjust inflation management.
As the Fed shows its intentions to keep rates lower for longer to drive activity and underpin employment, markets cheer the move, boosting risk-on and buoying the risk assets.
The pair is extending a 4-day winning streak and technical indicators keep scope for further gains.
Price action is attempting breakout at major resistance at 200W MA at 0.7250. Decisive break above will fuel further gains.
Momentum strongly bullish. Rising volatility will drive price action. Next major bull target lies at 78.6% Fib at 0.7573.
On the flipside, failure at 200W MA will negate any upside bias. 21-EMA is strong support at 0.7180. Break below could see more downside.
Major Support Levels:
S1: 0.7250 (200W MA)
S2: 0.7224 (5-DMA)
S3: 0.7180 (21-EMA)
Major Resistance Levels:
R1: 0.73 (Psychological mark)
R2: 0.7315 (55-EMA)
R3: 0.7573 (78.6% Fib)
Guidance: Watchout for decisive close above 200W MA for further upside.
