A detailed look at the FX Market after the Powell speech – Technical levels

Forex Markets are going bonkers since Powell's dovish speech at the Jackson Hole conference.

The US Dollar is getting sold off aggressively as the Market interpreted dovish signs for a cut in the September, even in a relatively nuanced speech – Markets didn't need much!

The Canadian Dollar is the worst performer (still up against the USD) while the JPY, Euro and Australian Dollar are all up above 1% as we speak.

Discover currency charts and levels by performing order, from best to worst.

Read More: Dow Jones new all-time highs! Market reactions to FED Chair Powell's Jackson Hole speech

The Yen is the biggest winner from the speech. Usually, the Japanese currency appreciates from converging interest rates.

One of the reasons why the yen had been performing so badly in the past period was because of the pushback in rate cut expectations.

The pair was rangebound but is now aggressively heading to the 146.00 Key support

Levels to watch for USDJPY:

• 150.00 Main Resistance
• Pivot at High of May Range from 147.50 to 148 (acting as immediate resistance) and convergence with the 4H MA 50 and 200
• 146.00 Main Support

AUDUSD has formed a significant Double bottom and is now moving above its 50-period MA, going towards the 200 MA (0.6512) – Bulls are pushing the pair from the immediate support zone, levels just below:

Levels to watch for AUDUSD:

• 0.6580 to 0.66 Main Resistance
• 0.6550 Pivot Zone (acting as mid-term resistance)
• 0.6512 4H MA 200 (immediate resistance
• 0.6480 to 0.65 Immediate Support

Things have changed significantly since our most recent report on EUR/USD, with buyers bringing the pair above August highs.

Levels to watch for EURUSD:

• Main resistance 1.18 at 2025 highs (1.1830)
• 1.1750 Intermediate Resistance/Pivot
• 1.1640 4H MA 200 acting as immediate support
• 1.16 Current main Support

The Swiss franc had been one of the worst performing currencies since the July rebound in the Greenback, but things are changing today!

Levels to watch for USDCHF:

• 0.8050 Main Resistance
• 0.80 Immediate Pivot
• 0.79 Main Support
• 2025 Lows 0.78730

GBPUSD has just invalidated a head and shoulders pattern mentioned in a previous analysis of the pair – now evolving in an upwards channel, it also looks like an inverted Head and shoulders (showing further bullish potential) could be in play.

Levels to watch for GBPUSD:

• Top of channel around 1.37 to 1.3730
• 1.36 Main Resistance
• 1.34 current Daily pivot (acted as Support)
• 1.32 Main Support

USDCAD was moving stubbornly higher but has reversed course in a flash since our Wednesday NA Markets analysis – The North-American currency pair is moving below its 50 period MA and is almost back below the 1.38 handle.

Levels to watch for USDCAD:

• Immediate resistance at Aug Highs 1.38750
• 1.38 Major Pivot (immediate Support)
• 1.3740 Support

Safe Trades as the weekend approaches!