Aayush Jindal
Key Highlights
- AUD/USD gained bearish momentum and declined below 0.7000.
- A bearish trend line is forming with resistance at 0.7050 on the 4-hour chart.
- Gold prices remained stable after a drop to $4,120.
- USD/JPY could dip further if there is a close below 156.00.
AUD/USD Technical Analysis
The Aussie Dollar failed to stay above 0.7080 and declined against the US Dollar. AUD/USD gained bearish momentum below 0.7020 and 0.7000.
Looking at the 4-hour chart, the pair remained well below 0.7000, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). A low was formed near 0.6954, and the pair might start a consolidation phase.
Immediate resistance could be 0.7000 and the 23.6% Fib retracement level of the downward move from the 0.7140 swing high to the 0.6954 low. The first major resistance might be 0.7050.
There is also a bearish trend line forming with resistance at 0.7050. A close above 0.7050 could result in a decent upward movement. In the stated case, the bulls could aim for a move to 0.7120 and the 100 simple moving average (red, 4-hour).
If there is no recovery wave, AUD/USD might continue to slide. The first major support might be 0.6920. A close below 0.6920 might accelerate the decline. In the stated case, the bears could aim for a move to 0.6865.
Looking at Gold, the bulls are active above $4,120, and they might aim for a recovery wave in the near term.
Upcoming Key Economic Events:
- US ISM Manufacturing Index for Sep 2026 – Forecast 55.0, versus 54.6 previous.
- Fed's Waller speech.
