Key Highlights
- AUD/USD started a fresh decline from the 0.6680 resistance.
- It traded below a key contracting triangle with support at 0.6660 on the 4-hour chart.
- NZD/USD started a downside correction after a strong increase to 0.6160.
- The US GDP could grow 1.3% in Q1 2024 (Preliminary), down from 1.6%.
AUD/USD Technical Analysis
The Aussie Dollar struggled to stay above the 0.6700 level against the US Dollar. AUD/USD started a fresh decline from the 0.6680 zone.
Looking at the 4-hour chart, the pair traded below a key contracting triangle with support at 0.6660. The bears gained strength and were able to push the pair below the 0.6650 support.
There was a move below the 50% Fib retracement level of the upward move from the 0.6591 swing low to the 0.6679 high. The pair is now trading below the 100 simple moving average (red, 4-hour). AUD/USD is now showing bearish signs below the 0.6630 level.
If the bears remain in action, the pair could decline toward the 0.6590 level. If there are more downsides, the pair could test the 200 simple moving average (green, 4-hour).
Immediate resistance is near the 0.6635 level. The first major resistance is near the 0.6660 level. A clear move above the 0.6660 resistance might send it toward the 0.6680 level. Any more gains might call for a move toward the 0.6700 level in the near term.
Looking at NZD/USD, the pair is correcting gains and might continue to slide toward the 0.6080 support in the near term.
Economic Releases
- US Gross Domestic Product Q1 2024 (Preliminary) – Forecast 1.3% versus previous 1.6%.
- US Initial Jobless Claims – Forecast 218K, versus 215K previous.
