AUD/USD Price Analysis: Tests the Rising Channel breakdown
- AUD/USD delivers a less-confident pullback to near 0.6425 ahead of the Jackson Hole Symposium.
- The US Dollar Index faces some pressure after refreshing its 11-week high at 104.30.
- AUD/USD is testing the breakdown of the Rising Channel chart pattern.
The AUD/USD pair rebounded after discovering buying interest near the round-level support of 0.6400 in the European session. The Aussie asset delivers a pullback move to near 0.6425 but the downside bias is still solid amid cautious market mood ahead of the Jackson Hole Symposium.
S&P500 futures add some gains in London but overall market sentiment remains jittery as hawkish interest rate guidance from Federal Reserve (Fed) chair Jerome Powell at Jackson Hole will impact the growth outlook. The US Dollar Index (DXY) faces some pressure after refreshing its 11-week high at 104.30.
Going forward, the Australian Dollar will dance to the tunes of the monthly Retail Sales data for July, which will be published on Monday. In June, consumer spending slowed down by 0.8%.
AUD/USD delivers a pullback and is testing the breakdown of the Rising Channel chart pattern formed on a two-hour scale. A breakdown of the aforementioned chart pattern confirms that the trend has turned bearish now. The 20-period Exponential Moving Average (EMA) at 0.6430 is expected to act as a barrier for the Aussie bulls.
The Relative Strength Index (RSI) (14) is on the verge of shifting into the bearish range of 20.00-40.00. An occurrence of the same will activate the downside momentum.
Going forward, a breakdown below August 22 low at 0.6403 will expose the asset to August low at 0.6364, followed by the round-level support at 0.6300.
In an alternate scenario, a recovery move above the intraday high at 0.6490 will drive the asset toward August 9 high at 0.6571. A breach of the latter will expose the asset to August 10 high at 0.6616.
AUD/USD two-hour chart
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Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
