Aayush Jindal
Key Highlights
- AUD/USD started a downside correction from the 0.6900 zone.
- It traded below a major bullish trend line with support near 0.6840 on the 4-hour chart.
- EUR/USD could rise further toward 1.1050 and 1.1080.
- Bitcoin price rallied above the $29,200 and $29,500 resistance levels.
AUD/USD Technical Analysis
The Aussie Dollar traded above the 0.6800 resistance against the US Dollar. AUD/USD tested the 0.6900 zone before it started a downside correction.
Looking at the 4-hour chart, the pair traded below the 0.6850 support level. It also traded below a major bullish trend line with support near 0.6840.
The bears pushed the pair below the 23.6% Fib retracement level of the upward move from the 0.6458 swing low to the 0.6899 high. However, the pair is still well supported above the 100 simple moving average (red, 4 hours) and the 200 simple moving average (green, 4 hours).
Immediate support is near the 0.6730 level. It is close to the 38.2% Fib retracement level of the upward move from the 0.6458 swing low to the 0.6899 high.
The next major support is near the 0.6680 level. If there is a downside break below the 0.6680 support, the pair could decline toward the 0.6600 support.
If there is a fresh increase, the pair could face resistance near 0.6850. The first major resistance is near the 0.6900 level. If there is a move above the 0.6900 resistance, the pair could rise toward 0.6950.
Looking at EUR/USD, the pair remained stable above the 1.0880 support and might for aim more upsides above the 1.1000 resistance.
Economic Releases
- BoE Interest Rate Decision - Forecast 4.75%, versus 4.50% previous.
- US Initial Jobless Claims - Forecast 260K, versus 262K previous.