Key Highlights
- AUD/USD is recovering losses and trading above 0.6350.
- It broke a key bearish trend line with resistance near 0.6380 on the 4-hours chart.
- EUR/USD is attempting a clear move above the 1.0000 resistance.
- GBP/USD gained pace after it broke the 1.1400 resistance zone.
AUD/USD Technical Analysis
The Aussie dollar formed a base above the 0.6200 zone against the US Dollar. AUD/USD started a fresh increase and was able to clear the 0.6320 resistance zone.
Looking at the 4-hours chart, the pair settled above the 0.6350 level and the 100 simple moving average (red, 4-hours). Besides, there was a break above a key bearish trend line with resistance near 0.6380 on the same chart.
The pair is now trading above the 50% Fib retracement level of the downward move from the 0.6547 swing high to 0.6170 low.
On the upside, an immediate resistance is near the 0.6450 zone. It is near the 76.4% Fib retracement level of the downward move from the 0.6547 swing high to 0.6170 low.
The next major resistance on the upside may perhaps be near 0.6500 or the 200 simple moving average (green, 4-hours). Any more gains could set the pace for a move towards the 0.6550 level. If there is a downside correction, the pair might test the 0.6350 support.
The next major support is near the 0.6250 level. A downside break below the 0.6250 support could send the pair towards the 0.6200 zone. Any more losses could lead the pair towards 0.6120.
Looking at GBP/USD, the pair was able to settle above the 1.1400 resistance zone and might even clear the 1.1500 barrier in the near term.
Economic Releases
- US New Home Sales for Sep 2022 (MoM) – Forecast -13.9% versus 28.8% previous.
- BoC Interest Rate Decision – Forecast 4%, versus 3.25% previous.
