Key Highlights
- AUD/USD declined heavily below the 0.6380 and 0.6350 support levels.
- A major bearish trend line is forming with resistance near 0.6280 on the 4-hour chart.
- EUR/USD is consolidating below the 1.0450 resistance zone.
- Gold is attempting to recover above the $2,620 pivot level.
AUD/USD Technical Analysis
The Aussie Dollar started a major decline from well above 0.6500 against the US Dollar. AUD/USD traded below the 0.6450 support to enter a bearish zone.
Looking at the 4-hour chart, the pair gained bearish momentum below 0.6350, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). Finally, it tested the 0.6200 support zone.
A low was formed at 0.6199 and the pair is now consolidating losses. On the upside, the pair could face resistance near the 0.6280 level. There is also a key bearish trend line forming with resistance near 0.6280 on the same chart.
The trend line is close to the 50% Fib retracement level of the downward move from the 0.6377 swing high to the 0.6199 low. The next major resistance is near the 0.6335 level.
A close above the 0.6335 level could set the tone for another increase. In the stated case, the pair could rise toward the 0.6380 resistance. On the downside, immediate support sits near the 0.6220 level.
The next key support sits near the 0.6200 level. Any more losses could send the pair toward the 0.6180 level. Any more losses might send the pair toward the 0.6150 level.
Looking at Gold, the price is attempting a recovery wave, but the bears might remain active near the $2,640 and $2,650 levels.
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