Key Highlights
- AUD/USD declined below the key support at 0.6780.
- It is facing resistance near 0.6750 and 0.6780 on the 4-hours chart.
- Gold and crude oil price is showing signs of bearish continuation.
- The Fed interest rate decision is scheduled today (forecast 3.25%, versus 2.5% previous).
AUD/USD Technical Analysis
The Aussie Dollar started a fresh decline from the 0.6920 zone against the US Dollar. AUD/USD declined below the 0.6840 support to move into a bearish zone.
Looking at the 4-hours chart, the pair extended losses below the 0.6780 support, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
The pair even spiked below the 0.6700 level and a low was formed near 0.6669. The pair started a consolidation phase above the 0.6670 level. On the upside, an initial resistance sits near the 0.6750 zone.
The first major resistance is near the 0.6780 level and the 100 simple moving average (red, 4-hours). A clear move above the 0.6750 and 0.6780 levels could open the doors for a decent increase.
In the stated case, the pair might rise towards the 0.6820 resistance zone. Any more gains might send the pair towards the 0.6880 level and the 200 simple moving average (green, 4-hours).
On the downside, an initial support is near the 0.6670 level. A downside break below the 0.6670 support might send the pair towards the 0.6620 level. The next major support is near the 0.6580 level, below which the pair could even test the 0.6500 level in the coming days.
Looking at gold price, the price is facing an increase in selling interest and there is a risk of a move below the $1,650 support zone.
Economic Releases
- Fed Interest Rate Decision – Forecast 3.25%, versus 2.5% previous.
