Key Highlights
- AUD/USD is following a bearish path and it broke the 0.7400 support.
- A key bearish trend line is forming with resistance near 0.7410 on the 4-hours chart.
- EUR/USD remains well below 1.1850, GBP/USD accelerated lower below 1.3700.
- Crude oil price declined heavily below the $70.00 support zone.
AUD/USD Technical Analysis
The Aussie Dollar started a steady decline from well above 0.7500 against the US Dollar. AUD/USD broke the 0.7400 support zone to move further into a bearish zone.
Looking at the 4-hours chart, the pair gained bearish momentum below 0.7400 and 0.7380. The pair even settled well below 0.7400, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
The pair is facing resistance near the 0.7355 level. It is close to the 23.6% Fib retracement level of the recent decline from the 0.7503 swing high to 0.7299 low.
The main resistance is now forming near the 0.7400 level. It is near the 50% Fib retracement level of the recent decline from the 0.7503 swing high to 0.7299 low. There is also a key bearish trend line forming with resistance near 0.7410 on the same chart.
To start a strong recovery, the pair must settle above 0.7400. Conversely, the pair might continue to move down below 0.7300. The next major support is near the 0.7250 level.
Looking at EUR/USD, the pair is still trading in a bearish zone below 1.1850. Besides, GBP/USD accelerated losses below the 1.3700 level.
Economic Releases
Canada’s New Housing Price Index (NHPI) for June 2021 (MoM) – Forecast +1.8%, versus +1.4% previous.
