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AUD/USD Attempts Bounce, But Bulls Face Tough Test Ahead

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Aayush Jindal

Key Highlights

  • AUD/USD started a fresh decline and traded below 0.6500.
  • A bearish trend line is forming with resistance at 0.6470 on the 4-hour chart.
  • EUR/USD is consolidating losses above the 1.1480 support.
  • GBP/USD is facing a major hurdle near 1.3120 and 1.3140.

AUD/USD Technical Analysis

The Aussie Dollar declined below 0.6550 and 0.6500 against the US Dollar. AUD/USD tested the 0.6420 zone and is currently attempting to recover.

Looking at the 4-hour chart, the pair recovered a few pips and climbed above 0.6450. There was a move above the 23.6% Fib retracement level of the downward move from the 0.6580 swing high to the 0.6421 low.

However, the pair is still below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). Besides, there is a bearish trend line forming with resistance at 0.6470.

A close above the trend line resistance might call for a steady increase. The first key hurdle sits at 0.6500 and the 50% Fib retracement level of the downward move from the 0.6580 swing high to the 0.6421 low. The next resistance could be 0.6520. Any more gains could set the pace for a steady increase toward 0.6550.

On the downside, there is a key support at 0.6420. The next support is 0.6400, below which the pair could start a steady decline to 0.6365. A close below 0.6365 could start a pullback toward 0.6320.

Looking at EUR/USD, the pair failed to recover steadily and is now at risk of another decline, possibly below the 1.1480 support.

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