Key Highlights
- AUD/USD started a downside correction from 0.7270.
- It traded below a key bullish trend line with support near 0.7200 on the 4-hours chart.
- EUR/USD is still struggling below 1.1380, and GBP/USD is trading well above 1.3500.
- The US CPI could increase 7% in Dec 2021 (YoY), up from 6.8%.
AUD/USD Technical Analysis
This past week, the Aussie Dollar attempted an upside break above 0.7250 against the US Dollar. However, AUD/USD struggled near 0.7270 and recently corrected lower.
Looking at the 4-hours chart, the pair traded as high as 0.7272 before correcting lower. There was a break below the 0.7220 and 0.7200 support levels. Besides, there was a break below a key bullish trend line with support near 0.7200 on the same chart.
The pair even spiked below the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours). A low was formed near 0.7129 and the pair is now consolidating.
On the downside, there is a decent support forming near 0.7125. The main support is forming near the 0.7090 level, below which the pair could drop to 0.7000.
On the upside, the pair is facing resistance near 0.7200 level and the 100 simple moving average (red, 4-hours). The next major resistance is near the 0.7220 level, above which the pair could revisit 0.7270.
Looking at EUR/USD, the pair is still struggling to gain pace above the 1.1380 zone. Besides, GBP/USD is trading in a positive zone above 1.3500.
Economic Releases
- US Consumer Price Index for Dec 2021 (MoM) – Forecast +0.4%, versus +0.8% previous.
- US Consumer Price Index for Dec 2021 (YoY) – Forecast +7.0%, versus +6.8% previous.
- US Consumer Price Index Ex Food & Energy for Dec 2021 (YoY) – Forecast +5.4%, versus +4.9% previous.
