Key Highlights
- AUD/USD started an upside correction from 0.7000.
- It broke an important declining channel with resistance near 0.7100 on the 4-hours chart.
- EUR/USD is attempting a recovery wave above 1.1280 and 1.1300.
- GBP/USD spiked below 1.3200 and it remains at risk of more downsides.
AUD/USD Technical Analysis
The Aussie Dollar started a major decline from 0.7500 against the US Dollar. AUD/USD tumbled below the 0.7300 and 0.7200 support levels.
Looking at the 4-hours chart, the pair even settled below 0.7200, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
A low was formed near 0.6992 and the pair is now correcting higher There was a break above the 0.7050 and 0.7080 resistance levels. Besides, there was a clear move above an important declining channel with resistance near 0.7100 on the same chart.
On the upside, the pair is facing resistance near 0.7170 and the 100 simple moving average (red, 4-hours). The next major resistance is near 0.7200.
A clear break above the 0.7170 and 0.7200 resistance levels could open the doors for a steady upward move. If not, there could be a fresh decline below the 0.7100 support. The next major support is near the 0.7020 and 0.7000 levels.
Looking at EUR/USD, the pair is stable above 1.1220, but it is facing a strong resistance near 1.1350. Besides, GBP/USD is struggling to recover above 1.3250.
Economic Releases
- Germany’s Trade Balance for Oct 2021 – Forecast €13.4B, versus €13.2B previous.
- US Initial Jobless Claims – Forecast 230K, versus 222K previous.
