AUD/USD At Risk of Another Decline, Oil Price Recovers
- AUD/USD is attempting an upside correction from the 0.6850 support.
- It is facing resistance near 0.7000 and 0.7020 on the 4-hours chart.
- EUR/USD might continue to move down towards 1.0620.
- The US initial jobless claims could increase from 183K to 190K.
AUD/USD Technical Analysis
The Aussie Dollar declined from the 0.7150 resistance against the US Dollar. AUD/USD even traded below the 0.7000 level before the bulls appeared.
Looking at the 4-hours chart, the pair traded as low as 0.6855 before it started an upside correction. There was a move above the 0.6880 and 0.6900 levels. The pair even settled above the 200 simple moving average (green, 4-hours).
On the upside, the pair is facing resistance near the 0.7000 barrier and the 100 simple moving average (red, 4-hours). It is close to the 50% Fib retracement level of the downward move from the 0.7157 swing high to 0.6855 low.
The next major resistance is near the 0.7050 level. A clear move above the 0.7050 resistance might start a steady increase towards the 0.7120 resistance zone.
Any more gains could open the doors for a move towards the 0.7180 level. The next key hurdle is near 0.7200, above which the pair could climb towards the 0.7250 resistance zone.
If there is no move above 0.7000, the pair might resume its decline. An immediate support is near the 0.6920 level. The next major support is near the 0.6850 zone. If there is a downside break, the pair could decline towards the 0.6760 level.
Looking at crude oil price, there was a decent recovery wave and the price was able to climb above the $76.50 resistance zone.
- German Consumer Price Index for Jan 2023 (YoY) – Forecast +8.9%, versus +8.6% previous.
- German Consumer Price Index for Jan 2023 (MoM) – Forecast +0.9%, versus -0.8% previous.
- US Initial Jobless Claims - Forecast 190K, versus 183K previous.