AUD/USD is still stuck in consolidation!
If you’re hoping to catch a big move from this pair, you might wanna check out this symmetrical triangle on its hourly time frame.
Don’t forget that this week is filled with top-tier catalysts, including global PMIs and the Jackson Hole Symposium, that might spur a breakout.
Fundamental factors seem to be lining up in favor of more downside for this forex pair, as the combination of hawkish Fed expectations and risk-off flows might keep the U.S. dollar supported.
In contrast, wage growth data from Australia and the RBA‘s latest meeting minutes are suggesting that the central bank has likely reached the peak of its tightening cycle.
Plus, news of Chinese property firms defaulting on their obligations might not bode well for Australia’s raw materials and commodities exports.
These themes might be emphasized during the Jackson Hole meeting, so traders might be inclined to price in expectations way ahead of the event.
With that, watch out for a sustained bearish move if AUD/USD falls below the triangle support at the .6400 handle. After all, this selloff might last by at least a hundred pips, which is the same height as the consolidation chart pattern.
Technical indicators are reflecting bearish vibes, too, as the 100 SMA is below the 200 SMA while Stochastic is heading south.
Gains past the pivot point (.6430), short-term falling trend line and 100 SMA dynamic resistance might point to a reversal from the downtrend though.
This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.