AUD/USD Price Analysis: Golden cross on 1H chart points to further upside
|- 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
AUD/USD: Additional levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.