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AUD/USD Could Face Hurdles, Oil Price Resumes Slide

Aayush Jindal

Aayush Jindal

Market Analysis

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.