AUDUSD: rebound continues to sell short

Fundamental analysis:

Asian stock markets fell for the eighth consecutive trading day on Wednesday. The Shanghai Stock Exchange Index fell to a two-week low and the US dollar remained high. The hawkish remarks of the Federal Reserve officials made investors cautious before the Jackson Hole central bank meeting this week. On the morning of Wednesday (Beijing time), chairman of the Minneapolis Federal Reserve Kashkari said that he was most worried that the Federal Reserve had misjudged the degree and persistence of price pressure and would need to carry out more radical interest rate hikes to control inflation.

AUDUSD daily chart

Technical analysis:

According to the daily chart, there is a sign that the short-term exchange rate has stopped falling and rebounded. MACD runs above the 0 axis but the volume can rapidly shrink under the 0 axis. RSI continues to weaken, and it is expected that the exchange rate will further decline.  

Long and short turning point: 0.7030

Pressing bit: 0.7200 0 0.7400

Support position: 0.6850 0.6700

Trading strategy: bearish below 0.7030, target 0.6850, 0.6700

Alternative strategy: bullish above 0.7030, target 0.7200, 0.7400