Key Highlights
- AUD/USD is struggling to stay above the 0.6600 support zone.
- It traded below a major bullish trend line with support at 0.6740 on the 4-hour chart.
- EUR/USD is consolidating below the 1.1050 pivot level.
- The US ADP employment could change 189K in July 2023, down from 497K.
AUD/USD Technical Analysis
The Aussie Dollar started a fresh decline from the 0.6900 zone against the US Dollar. AUD/USD declined below the 0.6800 and 0.6750 support levels.
Looking at the 4-hour chart, the pair even traded below a major bullish trend line with support at 0.6740. There was a close below the 0.6650 support, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).
The pair is now struggling to stay above the 0.6600 support zone. If there is a daily close below the 0.6600 support, there is a risk of a sharp decline.
The next major support is near 0.6550, below which AUD/USD could slide toward the 0.6520 zone. On the upside, the pair is facing resistance near the 0.6660 level. The first major resistance is near 0.6740 and the 100 simple moving average (red, 4 hours).
A close above the 0.6740 resistance could push the pair toward 0.6760. Any more gains could start a fresh increase toward the 0.6900 level.
Looking at EUR/USD, the pair corrected lower and is now consolidating below the 1.1050 pivot level.
Economic Releases
- US ADP Employment Change for July 2023 – Forecast 189K, versus 497K previous.
