Key Highlights
- AUD/USD declined below the 0.6450 and 0.6440 support levels.
- A major bullish trend line is forming with support near 0.6400 on the 4-hour chart.
- EUR/USD is showing heavy bearish signs below 1.0650.
- Gold prices moved lower and traded below the $1,920 support.
AUD/USD Technical Analysis
The Aussie Dollar started a fresh decline from the 0.6515 resistance against the US Dollar. AUD/USD traded below the 0.6450 support to enter a bearish zone.
Looking at the 4-hour chart, the pair settled below the 0.6440 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).
It traded as low as 0.6387 and recently started a minor upside correction. If there is a recovery wave, it could face resistance near the 0.6425 level and the 100 simple moving average (red, 4 hours).
The first major resistance is near the 0.6440 zone and the 200 simple moving average (green, 4 hours). The main resistance is now forming near the 0.6450 level. A close above 0.6450 could start a steady increase toward 0.6500.
Any more gains might send AUD/USD toward the 0.6550 resistance. On the downside, initial support is near the 0.6400 level. There is also a major bullish trend line forming with support near 0.6400 on the same chart.
The next key support is seen near the 0.6385 level, below which it could test 0.6360. If there is a move below 0.6360, the pair could dive toward 0.6320. Any more losses might send the pair toward the 0.6200 level.
Looking at EUR/USD, the pair remained in a bearish zone and might face a strong selling interest unless it recovers above 1.0650.
Economic Releases
- US Durable Goods Orders for August 2023 – Forecast -0.5% versus -5.2% previous.
- US Durable Goods Orders Ex Transportation for August 2023 – Forecast +0.1% versus +0.4% previous.
