Key Highlights
- The Aussie Dollar traded lower recently and moved below the 0.7900 support against the US Dollar.
- There is a crucial contracting triangle forming with support at 0.7805 on the 4-hours chart of EUR/USD.
- The Chicago Fed National Activity Index (CFNAI) declined to 0.12 in Jan 2018.
- Today, the US Durable Goods Orders for Jan 2018 will be released, which is forecasted to decline 2.2%.
AUDUSD Technical Analysis
The Aussie Dollar declined below the 0.7950 and 0.7900 support levels recently against the US Dollar. The AUD/USD pair tested the 0.7790 level and is currently trading in a range.
Looking at the 4-hours chart, it seems like the pair may make the next move. A push above the 0.7900-0.7910 resistance could take the pair towards 0.8000. On the other hand, a break below the 0.7800 support may initiate a fresh downside wave.
The chart points that there is a crucial contracting triangle forming with support at 0.7805. On the upside, the triangle resistance is at 0.7910. Therefore, the 0.7800 and 0.7900 are breakout levels.
The 0.7910 level is significant since it is near the 50% Fib retracement level of the last decline from the 0.7988 high to 0.7790 low. A successful close above the 0.7900 and 0.7910 levels could kick start a fresh rally in AUD/USD in the near term.
Recently in the US, the Chicago Fed National Activity Index (CFNAI) for Jan 2018 was released by Federal Reserve Bank of Chicago. The market was looking the index to rise to 0.15.
The actual result was a bit lower as there was a decline in the index to 0.12 from 0.14. However, there was no negative impact on the US Dollar.
Major pairs such as EUR/USD and GBP/USD traded lower and are currently in a bearish zone. On the other hand, USD/JPY is moving higher towards a major resistance area near 107.10-20.
Economic Releases to Watch Today
Euro Zone Services Sentiment Feb 2018 – Forecast 114.0, versus 114.7 previous.
German Consumer Price Index for Feb 2018 (Prelim) (YoY) – Forecast +1.5%, versus +1.6% previous.
German Consumer Price Index for Feb 2018 (Prelim) (MoM) – Forecast +0.5%, versus -0.7% previous.
US Durable Goods Orders for Jan 2018 – Forecast -2.2% versus +2.8% previous.
