Key Highlights
- AUD/USD is trading nicely above the key 0.7200 support zone.
- A crucial bullish trend line is in place with support near 0.7200 on the 4-hours chart.
- GBP/USD extended its decline below the 1.3000 support.
- The US Initial Jobless Claims could decline from 881K to 846K in the week ending Sep 05, 2020.
AUD/USD Technical Analysis
This past week, the Aussie Dollar declined below the 0.7320 support against the US Dollar. AUD/USD even traded below the 0.7250 support level, but the bulls were able to protect the 0.7200 support.
Looking at the 4-hours chart, the pair found support near a multi-touch zone near 0.7200 and the 200 simple moving average (green, 4-hours). A low is formed near 0.7192 and the pair started a decent recovery wave.
There was a break above the 0.7240 resistance. The pair even recovered above the 23.6% Fib retracement level of the downward move from the 0.7413 high to 0.7192 low.
On the upside, there is a major resistance forming near the 0.7300 level. The 50% Fib retracement level of the downward move from the 0.7413 high to 0.7192 low is also near 0.7302. A clear break above the 0.7300 resistance could lead the pair towards the 0.7350 and 0.7400 levels.
Conversely, the pair could decline below 0.7220. However, there is a strong support waiting on the downside near 0.7200 and a crucial bullish trend line on the same chart. A daily close below the 0.7200 support might start a sustained downward move.
Overall, AUD/USD is trading above a major support at 0.7200 and it could continue to recover. Looking at GBP/USD, there was a sharp decline below 1.3050 and 1.3000. On the other hand, downsides were limited in EUR/USD below 1.1780.
Upcoming Economic Releases
- ECB Interest Rate Decision – Forecast 0%, versus 0% previous.
- US Initial Jobless Claims – Forecast 846K, versus 881K previous.
