Key Highlights
- AUD/USD struggled near 0.6330 and started a fresh decline.
- It traded below a key bullish trend line with support at 0.6240 on the 4-hour chart.
- EUR/USD started a fresh decline from the 1.0520 zone.
- The US GDP could grow 2.8% in Q4 2024 (Preliminary).
AUD/USD Technical Analysis
The Aussie Dollar failed to extend gains above 0.6330 against the US Dollar. AUD/USD started a decline below the 0.6300 and 0.6250 levels.
Looking at the 4-hour chart, the pair traded below a key bullish trend line with support at 0.6240. There was a clear move below the 50% Fib retracement level of the upward move from the 0.6131 swing low to the 0.6330 high.
The pair even traded below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). On the downside, immediate support sits near the 0.6200 level.
The next key support sits near the 0.6175 level and the 76.4% Fib retracement level of the upward move from the 0.6131 swing low to the 0.6330 high. Any more losses could send the pair toward the 0.6120 level.
On the upside, the pair seems to be facing hurdles near the 0.6250 level. The next major resistance is near the 0.6285 level. A close above the 0.6285 level could set the tone for another increase. In the stated case, the pair could even clear the 0.6330 resistance.
Looking at EUR/USD, the pair failed to start a fresh decline and started and extended losses below the 1.0420 support.
Upcoming Economic Events:
- US Initial Jobless Claims – Forecast 220K, versus 223K previous.
- US Gross Domestic Product for Q4 2024 (Preliminary) – Forecast 2.8% versus previous 3.1%.
