Key Highlights
- AUD/USD moved into a bearish zone below the 0.7000 support.
- It is facing resistance near 0.6880 and a bearish trend line on the 4-hours chart.
- Crude oil price is showing bearish signs below the $78 pivot level.
- The US Gross Domestic Product could grow 2.9% in Q4 2022 (Preliminary).
AUD/USD Technical Analysis
The Aussie Dollar started a major decline from well above 0.7120 against the US Dollar. AUD/USD declined below the 0.7000 support zone to enter a bearish zone.
Looking at the 4-hours chart, the pair settled below the 0.6950 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
There was a clear move below the 0.6880 support zone. The pair even spiked below the 0.6820 level and remains at a risk of more losses. On the downside, an immediate support is near the 0.6800 level.
The next major support is near the 0.6750 level, below which there is a risk of a move towards the 0.6720. Any more losses could open the doors for a drop towards 0.6650.
On the upside, an immediate resistance is near the 0.6860 level. The next major resistance is near the 0.6880 level and a connecting bearish trend line on the same chart. The main resistance is now forming near 0.7000 and the 100 simple moving average (red, 4-hours).
A clear move above the 0.7000 resistance might start a steady increase towards the 0.7080 resistance zone. Any more gains could open the doors for a move towards the 0.7150 level.
Looking at EUR/USD, the pair is still in a negative zone below the 1.0700 level and recoveries might face hurdles.
Economic Releases
- US Initial Jobless Claims – Forecast 200K, versus 194K previous.
- US Gross Domestic Product Q4 2022 (Preliminary) – Forecast 2.9% versus previous 2.9%.
