- AUD/USD declined heavily and broke the 0.6660 support area.
- A major bearish trend line is forming with resistance near 0.6690 on the 4-hours chart.
- The US CB Consumer Confidence rose from 130.4 to 130.7 in Feb 2020.
- The US New Home Sales could increase 3.5% in Jan 2020 (MoM).
AUD/USD Technical Analysis
In the past few days, the Aussie Dollar declined heavily from well above the 0.6750 area against the US Dollar. AUD/USD even broke the key 0.6700 and 0.6600 support levels to move further into a bearish zone.
Looking at the 4-hours chart, the pair settled below 0.6600, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
A new yearly low is formed near 0.6582 and the pair is currently consolidating losses. On the upside, there are many hurdles near the 0.6620 and 0.6640 levels. The first major resistance is near the 0.6650 and 0.6660 levels (the previous breakdown zone).
Besides, the 50% Fib retracement level of the downward move from the 0.6733 high to 0.6582 low. More importantly, there is a major bearish trend line forming with resistance near 0.6690.
Therefore, an upside correction in AUD/USD could face a lot of hurdles on the upside, starting with 0.6650 and up to 0.6700.
On the downside, an initial support is near the 0.6580 level. A clear break below the 0.6580 support could open the doors for a larger decline towards the 0.6550 and 0.6540 levels.
Overall, AUD/USD is following a downtrend and it remains at a risk of more losses below 0.6580. Conversely, EUR/USD and GBP/USD are currently showing a few recovery signs.
Upcoming Economic Releases
- US New Home Sales for Jan 2020 (MoM) – Forecast +3.5% versus -0.4% previous.