Key Highlights
- AUD/USD gained bullish momentum and traded to a new 2-year high above 0.7400.
- A key bullish trend line is forming with support at 0.7415 on the daily chart.
- EUR/USD struggles to gain pace above 1.2150, GBP/USD climbed above the 1.3400 resistance.
- The US Consumer Price Index (to be released today) could rise 1.1% in Nov 2020 (YoY).
AUD/USD Technical Analysis
In the past few days, there was a strong increase in the Aussie Dollar above 0.7200 against the US Dollar. AUD/USD even broke the main 0.7400 resistance to move further into a positive zone.
Looking at the daily chart, the pair broke the last swing high at 0.7415. It even settled well above 0.7400, the 200-day simple moving average (green), and the 100-day simple moving average (red).
It traded to a new 2-year high above 0.7450 and it is likely to continue higher. The next major resistance is near the 0.7515 level. It is close to the 1.236 Fib extension level of the key drop from the 0.7415 swing high to 0.6991 swing low.
Any more gains could increase the chances of a push towards the 0.7600 level. Conversely, there might be a downside correction below the 0.7440 level. An initial support is near the 0.7415 level (the recent breakout zone).
There is also a key bullish trend line forming with support at 0.7415 on the same chart. The next major support is near the 0.7400 level, below which the pair could test 0.7320.
Looking at EUR/USD, the pair seems to be facing a strong resistance near 1.2150 and 1.2180. Conversely, there was a sharp increase in GBP/USD above 1.3400.
Upcoming Economic Releases
- UK GDP Oct 2020 (MoM) – Forecast +0.4%, versus +1.1% previous.
- ECB Interest Rate Decision – Forecast 0%, versus 0% previous.
- US Consumer Price Index Nov 2020 (MoM) – Forecast +0.2%, versus 0% previous.
- US Consumer Price Index Nov 2020 (YoY) – Forecast +1.1%, versus +1.2% previous.
- US Initial Jobless Claims – Forecast 725K, versus 712K previous.
