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AUD/USD Could Recover Higher, Fed Raised Rates Again

Aayush Jindal

Aayush Jindal

Key Highlights

  • AUD/USD started an upside correction above the 0.6640 resistance.
  • It broke a major bearish trend line with resistance at 0.6670 on the 4-hours chart.
  • EUR/USD and GBP/USD extended gains above key hurdles.
  • The fed increased interest rates from 4.75% to 5%.

 

AUD/USD Technical Analysis

The Aussie dollar tested the 0.6565 zone before it started an upside correction against the US dollar. AUD/USD cleared the 0.6620 resistance to move into a short-term positive zone.

Looking at the 4-hours chart, the pair was able to clear the 0.6650 resistance zone. Besides, it broke a major bearish trend line with resistance at 0.6670.

The bulls were able to push the pair above the 50% Fib retracement level of the downward move from the 0.6774 swing high to 0.6564 low. However, the bears were active near the 0.6750 resistance zone.

It seems like AUD/USD struggled near the 76.4% Fib retracement level of the downward move from the 0.6774 swing high to 0.6564 low. The next major resistance is near the 0.6775. A clear move above the 0.6775 resistance might send the pair towards the 0.6820 zone.

Any more gains might send the pair towards 0.6850 or even 0.6880. On the downside, an immediate support is near the 0.6640.

The next major support is near the 0.66220 level, below which there is a risk of a move towards the 0.6565 level or the last swing low.

Looking at EUR/USD, the pair spiked above the key 1.0750 resistance zone and might attempt more gains in the near term.

Economic Releases

  • BoE Interest Rate Decision - Forecast 4.25%, versus 4.0% previous.
  • US Initial Jobless Claims - Forecast 201K, versus 192K previous.