(function() { var didInit = false; function initMunchkin() { if(didInit === false) { didInit = true; Munchkin.init('105-GAR-921'); } } var s = document.createElement('script'); s.type = 'text/javascript'; s.defer = true; s.src = '//munchkin.marketo.net/munchkin.js'; s.onreadystatechange = function() { if (this.readyState == 'complete' || this.readyState == 'loaded') { initMunchkin(); } }; s.onload = initMunchkin; document.getElementsByTagName('head')[0].appendChild(s); })();(function(h,o,t,j,a,r){ h.hj=h.hj||function(){(h.hj.q=h.hj.q||[]).push(arguments)}; h._hjSettings={hjid:1422437,hjsv:6}; a=o.getElementsByTagName('head')[0]; r=o.createElement('script');r.defer=1; r.src=t+h._hjSettings.hjid+j+h._hjSettings.hjsv; a.appendChild(r); })(window,document,'https://static.hotjar.com/c/hotjar-','.js?sv=');

Aayush Jindal

Key Highlights

  • AUD/USD could face resistance near 0.6820.
  • EUR/USD tested the all-important parity level.
  • Crude oil price started a fresh decline and traded below $100.
  • The US Consumer Price Index could increase 8.8% in June 2022 (YoY).

AUD/USD Technical Analysis

The Aussie Dollar failed to correct higher above the 0.6880 level against the US Dollar. AUD/USD started a fresh decline and moved into a bearish zone below 0.6800.

Looking at the 4-hours chart, the pair even settled well below 0.6850, the 100 simple moving average (red, 4-hours). It is also well above the 200 simple moving average (green, 4-hours).

A low was formed near the 0.6710 level before the pair started an upside correction. The pair moved a few points higher and climbed above the 0.6750 level. On the upside, the pair is facing resistance near the 0.6800 zone.

There is also a key bearish trend line forming with resistance near 0.6820 on the same chart. A clear move above the trend line might call for a test of the 0.6880 resistance. Any more gains may perhaps open the doors for a move towards the 0.6950 resistance.

If not, the pair might resume its decline below the 0.6750 level. The next major support sits near the 0.6720 level. A downside break below the 0.6720 support could send the pair further lower towards the 0.6650 level.

Looking at EUR/USD, the pair remained in a bearish zone and tested a crucial support at 1.0000. Similarly, crude oil price declined and traded below the $100 support zone.

Economic Releases

  • US Consumer Price Index for June 2022 (MoM) – Forecast +1.1%, versus +1.0% previous.
  • US Consumer Price Index for June 2022 (YoY) – Forecast +8.8%, versus +8.6% previous.
  • US Consumer Price Index Ex Food & Energy for June 2022 (YoY) – Forecast +5.8%, versus +6.0% previous.
  • BoC Interest Rate Decision – Forecast 2.25%, versus 1.5% previous.