Key Highlights
- AUD/USD gained pace for a move above the 0.6600 resistance.
- A key bullish trend line is forming with support at 0.6620 on the 4-hour chart.
- EUR/USD failed to continue higher above 1.1680.
- USD/JPY started a fresh increase above the 156.00 resistance.
AUD/USD Technical Analybsis
The Aussie Dollar started a strong increase above 0.6550 against the US Dollar. AUD/USD even cleared the 0.6600 barrier to enter a positive zone.
Looking at the 4-hour chart, the pair settled above the 0.6600 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). A high was formed at 0.6648, and the pair is now consolidating gains.
There is also a key bullish trend line forming with support at 0.6620. Immediate resistance sits near 0.6650. The first key hurdle is seen near 0.6665.
A close above 0.6665 could open the doors for a move toward 0.6700. Any more gains could set the pace for a steady increase toward 0.6740. On the downside, there is key support at 0.6620 and the trend line at 1.1620.
The next support is 0.6595 and the 23.6% Fib retracement level of the upward move from the 0.6421 swing low to the 0.6648 high. A close below 0.6595 could open the doors for a test of 0.6560.
The main support sits near the confluence zone at 0.6535, the 100 simple moving average (red, 4-hour), the 200 simple moving average (green, 4-hour), and the 50% Fib retracement level of the upward move from the 0.6421 swing low to the 0.6648 high.
Looking at EUR/USD, the pair failed to extend gains above 1.1680 and recently corrected lower.
Upcoming Key Economic Events:
- BoE’s Governor Bailey speech.
- ECB’s President Lagarde speech.
- BoC Interest Rate Decision – Forecast 2.25%, versus 2.25% previous.
