AUDUSD remains under pressure but key support still holds
AUDUSD is holding within a narrow range on Friday, as price action reduces speed ahead of today’s key event -speech of Fed Chair Powell at Jackson Hole symposium, which is expected to give more hints about the central bank’s steps in the near future on interest rates.
Near-term structure remains weak following Wednesday’s strong rally (up 0.93% for the day) and subsequent drop on Thursday (down 0.91%) which fully reversed recovery, but still holding above 0.6400 support (psychological / Fibo 76.4% of 0.6170/0.7157 rally) which recently contained several attacks and acts as solid support.
Technical studies on daily chart are in bearish mode and add to overall negative picture, however firm break of 0.6400 zone is required to generate bearish signal and open way for fresh acceleration lower.
The Aussie dollar would come under increased pressure on hawkish comments from Powell, but may receive fresh support if comments sound to markets as less hawkish than expected or dovish.
Res: 0.6488; 0.6500; 0.6567;0.6592
Sup: 0.6400; 0.6364; 0.6272; 0.6170