Key Highlights
- AUD/USD declined heavily from the 0.6800 resistance zone.
- It traded below a key bullish trend line with support at 0.6725 on the 4-hour chart.
- EUR/USD started a downside correction below the 1.0880 level.
- Oil prices turned red and declined below the $78.50 level.
AUD/USD Technical Analysis
The Aussie Dollar saw a strong bearish reaction from 0.6800 against the US Dollar. AUD/USD started a major decline and traded below the 0.6720 support.
Looking at the 4-hour chart, the pair traded below a key bullish trend line with support at 0.6725. It settled below the 0.6680 pivot level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour).
The decline dragged the pair below the last swing low of 0.6619. Immediate support is near the 0.6580 level. The next major support is near the 0.6550 level.
A downside break and close below the 0.6550 support zone could open the doors for more losses. In the stated case, AUD/USD might decline toward the 0.6500 level.
If there is a recovery wave, the pair could face resistance near the 0.6640 level. The next resistance sits at 0.6660. The main hurdle sits at 0.6700. A clear move above the 0.6700 resistance might send it toward the 0.6720 level. Any more gains might open the doors for a test of the 0.6750 zone in the coming days.
Looking at Oil, the bears took control and they were able to push the price below the $78.80 and $78.50 support levels.
Economic Releases
- Euro Zone Manufacturing PMI for July 2024 (Preliminary) – Forecast 46.1, versus 45.8 previous.
- Euro Zone Services PMI for July 2024 (Preliminary) – Forecast 53.0, versus 52.8 previous.
- UK Manufacturing PMI for July 2024 (Preliminary) – Forecast 51.1, versus 50.9 previous.
- UK Services PMI for July 2024 (Preliminary) – Forecast 52.5, versus 52.1 previous.
- US Manufacturing PMI for July 2024 (Preliminary) – Forecast 51.7, versus 51.6 previous.
- US Services PMI for July 2024 (Preliminary) – Forecast 54.4, versus 55.3 previous.
