Key Highlights
- AUD/USD recovered nicely above the 0.6000 pivot area.
- Recently, there was a break above a declining channel with resistance near 0.6080 on the 4-hours chart.
- NZD/USD is also showing a few positive signs above the 0.5900 support area.
- The US Initial Jobless Claims for the week ending April 04, 2020 could decline from 6648K to 5250K.
AUD/USD Technical Analysis
After a successful close above 0.5800, the Aussie dollar extended its recovery against the US Dollar. AUD/USD broke the key 0.6000 resistance area to move into a positive zone
Looking at the 4-hours chart, the pair even settled above the 0.6080 level and the 100 simple moving average (red, 4-hours). Recently, there was a downside correction from the 0.6214 high.
The pair traded below the 0.6120 support, but the 0.6000 support acted as a strong buy zone. As a result, there was a fresh increase and the pair surpassed a declining channel with resistance near 0.6080.
The pair is now trading nicely above 0.6120, with an immediate resistance near the 0.6270 level and the 200 simple moving average (green, 4-hours).
If there is a clear break above the 200 SMA, the pair could even surpass the 0.6300 resistance. The next major stop for the bulls might be the 0.6440 resistance area.
Conversely, the pair could correct lower from 0.6270 or 0.6300. On the downside, an initial support is near the 0.6100 level. The main support is near the 0.6000 area and the 100 SMA, below which the pair might start a fresh decrease towards 0.5800.
Looking at EUR/USD, the pair is still above the 1.0750 support and it could correct higher. Similarly, GBP/USD might rise above the 1.2500 resistance area.
Upcoming Economic Releases
- UK Industrial Production for Feb 2020 (MoM) – Forecast +0.1%, versus -0.1% previous.
- UK Manufacturing Production for Feb 2020 (MoM) – Forecast +0.1%, versus +0.2% previous.
- UK GDP for Feb 2020 (MoM) – Forecast +0.1%, versus 0% previous.
- US Initial Jobless Claims – Forecast 5250K, versus 6648K previous.
- Canada’s Net Employment Change March 2020 – Forecast -350KK, versus 30.3K previous.
- Canada’s Unemployment Rate March 2020 – Forecast 7.2%, versus 5.6% previous.
