Key Highlights
- AUD/USD started a major decline from the 0.7550 resistance.
- A major bearish trend line is forming with resistance near 0.7275 on the 4-hours chart.
- The US Manufacturing PMI increased from 58.4 to 59.1 in Nov 2021 (Preliminary).
- The US GDP could grow 2.1% in Q3 2021 (Preliminary).
AUD/USD Technical Analysis
The Aussie Dollar started a major decline from well above 0.7500 against the US Dollar. AUD/USD broke the 0.7350 support to move into a bearish zone.
Looking at the 4-hours chart, the pair extended decline below the 0.7300 level. It even settled below the 0.7300 level, and the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
On the downside, an initial support is near the 0.7200 level. A downside break below 0.7220 may perhaps open the doors for more losses. The next major support sits at 0.7120, below which the pair could dive to 0.7000.
On the upside, the pair is facing hurdles near 0.7270. There is also a major bearish trend line forming with resistance near 0.7275 on the same chart.
The main resistance is forming near the 0.7300 level. A daily close above 0.7200 may perhaps open the doors for a decent increase. The next key stop for the bulls could be 0.7280.
Besides, EUR/USD extended decline below 1.1250, but it remained stable above 1.1200. GBP/USD also resumed decline and revisited the 1.3350 support.
Economic Releases
- German IFO Business Climate Index for Nov 2021 – Forecast 96.6, versus 97.7 previous.
- US Initial Jobless Claims – Forecast 260K, versus 268K previous.
- US Durable Goods Orders for Oct 2021 – Forecast +0.2% versus -0.3% previous.
- US Gross Domestic Product Q3 2021 (Preliminary) – Forecast 2.1% versus previous 2.0%.
