Sat, Oct 23, 2021 @ 18:06 GMT
HomeContributorsTechnical AnalysisAUD/USD Turns Red Below 0.7300, Fed Next

AUD/USD Turns Red Below 0.7300, Fed Next

Key Highlights

  • AUD/USD started a fresh decline from the 0.7480 region.
  • A major bearish trend line is forming with resistance near 0.7270 on the 4-hours chart.
  • EUR/USD is struggling to recover above 1.1750, GBP/USD settled below 1.3700.
  • The Fed will announce interest rates today (forecast 0.25%, versus 0.25% previous).

AUD/USD Technical Analysis

The Aussie Dollar struggled to clear the 0.7500 zone against the US Dollar. As a result, AUD/USD started a major decline from the 0.7477 high and moved into a negative zone.

Looking at the 4-hours chart, the pair traded below the 0.7400 and 0.7350 support levels. There was a break below the 50% Fib retracement level of the key upward move from the 0.7106 swing low to 0.7477 high.

It is now trading well below 0.730, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

An immediate support is near the 0.7200 and 0.7195 levels. The 76.4% Fib retracement level of the key upward move from the 0.7106 swing low to 0.7477 high is also near the 0.7193 level. Any more losses might call for a move towards the 0.7120 level.

On the upside, an immediate resistance is near the 0.7265 level. There is also a major bearish trend line forming with resistance near 0.7270 on the same chart.

The next major resistance is near the 0.7330 region and the 100 simple moving average (red, 4-hours). A successful close above 0.7300 and 0.7330 might start a fresh increase in the near term.

Looking at EUR/USD, the pair is struggling to recover above 1.1750 and it might resume its decline. Similarly, GBP/USD remains at a risk of more downsides below 1.3650.

Economic Releases

  • US Existing Home Sales for August 2021 (MoM) – Forecast +0.5%, versus +2.0% previous.
  • Fed Interest Rate Decision – Forecast 0.25%, versus 0.25% previous.

 

 

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