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AUD/USD Could Stage Strong Rally If It Breaks 0.7820

Aayush Jindal

Aayush Jindal

Key Highlights

  • AUD/USD is consolidating above the 0.7750 support zone.
  • A key bullish trend line is forming with support near 0.7695 on the 4-hours chart.
  • EUR/USD extended gains above 1.2120, and GBP/USD is stable above 1.3880.
  • The US GDP could increase 6.5% in Q1 2021 (Preliminary), up from 4.3%.

 

AUD/USD Technical Analysis

The Aussie Dollar started a steady increase from the 0.7550 support zone against the US Dollar. AUD/USD broke the 0.7700 and 0.7720 resistance levels to move into a positive zone.

Looking at the 4-hours chart, the pair even gained pace above the 0.7750 level. It settled well above the 0.7700 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

However, the pair faced a strong resistance near the 0.7815 and 0.7820 levels. Recently, there was a downside correction below 0.7750, but downsides were limited.

The pair is now consolidating nicely and well above the 0.7750 support. There is also a key bullish trend line forming with support near 0.7695 on the same chart. If there is a downside break below the trend line support, the pair could decline towards the 0.7640 support level.

On the upside, an initial resistance is near the 0.7815 zone. The main resistance is still near the 0.7820 level. A successful close above the 0.7820 zone could open the doors for a steady rise in the coming sessions.

Looking at EUR/USD, the pair remains in a positive zone above 1.2050. Besides, gold price is holding gains above the $1,750 pivot level.

Economic Releases

  • Germany’s Unemployment Change for April 2021 - Forecast -10K, versus -8K previous.
  • Germany’s Unemployment Rate for April 2021 – Forecast 6%, versus 6% previous.
  • German Consumer Price Index for April 2021 (YoY) (Prelim) – Forecast +1.9%, versus +1.7% previous.
  • German Consumer Price Index for April 2021 (MoM) (Prelim) – Forecast +0.5%, versus +0.5% previous.
  • Euro Zone Consumer Confidence for April 2021 – Forecast -8.1, versus -8.1 previous.
  • US Initial Jobless Claims - Forecast 549K, versus 547K previous.
  • US Gross Domestic Product Q1 2021 (Preliminary) – Forecast 6.5% versus previous 4.3%.