- AUD/USD trades weak on the day as the greenback remains buoyed after Powell's optimistic testimony.
- Powell's comments, during the semiannual congressional testimony, suggested that lingering trade tensions will not prevent the Fed from raising interest rates.
- On the otherside, subdued copper prices add to pressure on the commodity-linked Australian Dollar.
- AUD/USD upside capped at 5-DMA, slips below 0.74 handle to hit fresh 2-week lows at 0.7347.
- Technical indicators on daily charts have turned bearish. But bullish divergence on RSI and Stochs keeps scope for upside.
- We see next major support at 0.7290 (major trendline support). Break below will accentuate weakness.
- Focus now on US housing market data ahead of Powell's second round of testimony before the House Financial Services Committee.
- On the upside, break above 21-EMA at 0.7415 could see further upside.
Support levels - 00.73472 (June 19 low), 0.7310 (July 2 low), 0.7290 (trendline)
Resistance levels - 0.7398 (5-DMA), 0.7415 (21-EMA), 0.7485 (55-EMA)
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -135.727 (Bearish), while Hourly USD Spot Index was at 150.608 (Bulish) at 0730 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
