Monday 27th August: Weekly technical outlook and review.
US President Trump kicked off the week reiterating his disagreement with the Fed, consequently weighing on the US dollar.
The greenback extended losses on Tuesday and printed a modest bearish candle on Wednesday.
The minutes of Wednesday’s FOMC’s July/August meeting hinted at a September hike, though in chorus added a mildly dovish note.
The central bank warned escalation of trade disputes was a potential downside risk to the economy.
The US dollar index ended the week down 1.01%, with the EUR/USD eking out a solid 1.6% gain, now fast approaching a weekly resistance area seen at 1.1717-1.1862.
Although the Australian dollar finished the week all but unchanged, it was not without volatile moves in between!
The AUD/USD clocked peaks of 0.7381 and lows of 0.7238 after PM Turnbull just survived a no confidence vote, but failed to overcome the subsequent leadership challenge.
With the new PM designate, and soon to be former Treasurer Scott Morrison, given the thumbs up, the commodity currency firmly reclaimed 0.73 and concluded the week approaching 0.7350 territory.
By way of a clear-cut indecision candle, weekly price action on the AUD/USD was contained between resistance at 0.7371 and the 2016 yearly opening level at 0.7282 last week.
With the above in mind, let’s make our way over to the charts and see what recent movement offers in terms of potentially tradable levels this week…
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