Key Highlights
- AUD/USD is moving higher above the 0.6550 resistance.
- It broke a major bearish trend line with resistance near 0.6510 on the 4-hour chart.
- EUR/USD is still struggling to start a recovery wave above the 1.0780 resistance.
- The BoC interest rate decision is scheduled today (forecast 4.5%, versus 4.5% previous).
AUD/USD Technical Analysis
The Aussie Dollar found support near the 0.6460 zone against the US Dollar. AUD/USD started a fresh increase and was able to clear the 0.6500 resistance.
Looking at the 4-hour chart, the pair broke a major bearish trend line with resistance near 0.6510. There was a close above the 100 simple moving average (red, 4 hours). The bulls pushed the pair above the 50% Fib retracement level of the downward move from the 0.6818 swing high to the 0.6458 low.
It is now trading above the 200 simple moving average (green, 4 hours) and testing the 76.4% Fib retracement level of the downward move from the 0.6818 swing high to the 0.6458 low.
If there is a move above the 0.6680 resistance, the pair could drift toward 0.6750. The main resistance is near 0.6800, above which the pair might rise steadily.
If there is no wave above 0.6680, the pair could dip toward 0.6620. The next major support is near the 0.6550 level. If there is a downside break below the 0.6550 support, the pair could decline toward the 0.6500 support.
Looking at EUR/USD, the pair is now consolidating losses and still facing a lot of hurdles near the 1.0780 level.
Economic Releases
BoC Interest Rate Decision – Forecast 4.5%, versus 4.5% previous.
