Key Highlights
- AUD/USD found support near 0.6595 and corrected higher.
- It broke a key bearish trend line with resistance near 0.6640 on the 4-hour chart.
- EUR/USD and GBP/USD might gain bullish momentum.
- Crude oil prices are rising toward the $72.50 resistance.
AUD/USD Technical Analysis
The Aussie Dollar found support near 0.6600 after a major decline against the US Dollar. AUD/USD traded as low as 0.6595 and recently started an upside correction.
Looking at the 4-hour chart, the pair climbed above the 0.6625 resistance zone. It also broke a key bearish trend line with resistance near 0.6640.
The pair climbed above the 200 simple moving average (green, 4 hours) and the 23.6% Fib retracement level of the downward move from the 0.6899 swing high to the 0.6595 low. It is now rising toward a couple of key hurdles.
On the upside, the first major resistance is near 0.6750. It is close to the 50% Fib retracement level of the downward move from the 0.6899 swing high to the 0.6595 low. The next major resistance is near 0.6780.
If there is a move above the 0.6780 resistance, the pair could rise toward 0.6800. Any more gains might send AUD/USD toward the 0.6850 level.
Immediate support is near the 0.6640 level. The next major support is near the 0.6600 level. If there is a downside break below the 0.6600 support, the pair could decline toward the 0.6520 level in the near term.
Looking at crude oil prices, there was a fresh increase from the $66.90 zone and there could be a move toward $72.50.
Economic Releases
- Germany’s Services PMI for June 2023 – Forecast 54.1, versus 54.1 previous.
- Euro Zone Services PMI for June 2023 – Forecast 52.4, versus 52.4 previous.
- UK Services PMI for June 2023 – Forecast 53.7, versus 53.7 previous.
- FOMC Meeting Minutes.
