Having posted a daily high at 0.7639, the AUD/USD pair all of its early gains and has now moved back close to yesterday’s closing level to currently trade around 0.7615 region.
The greenback, as measured by the overall US Dollar Index, seems to have gained some traction ahead of the US economic releases, namely - durable goods orders and weekly jobless claims, later during NA trading session. A broad based US Dollar strength is weighing on commodities and denting demand for commodity-linked currencies – like the Aussie.
Market participants, however, remain focused on the Fed Chair Janet Yellen’s remarks at the Fed's annual symposium in Jackson Hole, which would be scrutinized to seek clarity over the timing of next Fed rate-hike action and eventually determine the pair’s direction in the near-term.
How strong has the move been?
The hourly FXStreet OB/OS Index is showing neutral conditions, alongside the FXStreet Trend Index which is slightly bullish. At the time of writing, RSI is neutral at 38.85, down from 54.06 at the last hour close, while ADX is ranging at 25.99, up from 18.36 previous.
Meanwhile, daily RSI is in neutral territory at 50.86. On the hourly AUD/USD chart, the 200 SMA is declining and currently at 0.7621, down from the previous hour close at 0.7648. On average, the exponential closing price for the past 20 days is 0.7623, with the trend indicating a range bound movement ahead.
What price levels and patterns have to be considered?
Immediate resistance ahead is seen at 0.7621 (Hourly 100 SMA), 0.7621 (Hourly 20 EMA), 0.7623 (Daily 20 SMA), 0.7636 (Yesterday's High) and 0.7637 (Daily Classic R1). Next support to the downside can be found at 0.7613 (Daily Classic PP), 0.7604 (Daily Low) and 0.7590 (Daily Classic S1).
Looking at price patterns, we can see a Piercing Line 1-hour candlestick formation, and a Doji 4-hour formation.
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