- AUD / USD consolidates ahead of the next up push.
- The technical setup on the hourly chart is further upside.
- All eyes remain on Fed Chairman Powell’s Jackson Hole speech.
AUD / USD is trading slightly below 0.7250 at the start of Europe, after hitting a new six-day high at 0.7251 earlier in the Asian session.
The Bulls have taken a break and are awaiting further impetus from US Federal Reserve (Fed) Chairman Jerome Powell’s speech scheduled for 1:10 p.m. GMT at the Jackson Hole Symposium.
Despite the calm of trading, the bias around the spot remains on the rise, in light of a golden cross spotted on the hourly chart early Thursday. The 50-hour simple moving average (HMA) broke above the 200-HMA resulting in a bullish cross.
Also, for the price to hold above the 21-HMA sloping upward at 0.7228 adds credit to the brighter outlook for the Aussie.
Therefore, buyers look to 0.7276 Aug 19 high for a breakout of the daily high. The round figure of 0.7300 could be tested later. The hourly Relative Strength Index (RSI) sits comfortably above the midline, in the bullish region.
If the bulls do not resist above the 21-HMA, a sharp decline towards the 0.7200 level cannot be ruled out. This zone is the confluence of the 50 and 200-HMA.
The next cushion is seen horizontally 100-HMA at 0.7188.