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AUD/USD Could Struggle Above 0.7200, Gold Dives

Key Highlights

  • AUD/USD declined sharply below the 0.7200 support zone.
  • A major resistance is forming near 0.7200 and 0.7240.
  • Gold price broke the $1,900 support to move into a short-term negative zone.
  • The US ADP Employment could change 395K in April 2022, down from 455K.


AUD/USD Technical Analysis

The Aussie Dollar struggled to stay above 0.7400 against the US Dollar. AUD/USD declined heavily and traded below the key 0.7250 support zone.

Looking at the 4-hours chart, the pair extended decline below 0.7220. There was also a close below 0.7200, the 200 simple moving average (green, 4-hours), and the 100 simple moving average (red, 4-hours).

Finally, there was a move below the 0.7050 level and the pair traded to a new multi-month low at 0.7030. It is now consolidating losses above the 0.7050 level.

The pair tested the 23.6% Fib retracement level of the main decline from the 0.7458 swing high to 0.7030 low. The first major resistance is forming near the 0.7200 level. If there is an upside break above 0.7200, the pair could rise to 0.7240.

The 50% Fib retracement level of the main decline from the 0.7458 swing high to 0.7030 low is also near the 0.7245. A close above 0.7240 and 0.7250 could open the doors for a move towards the 0.7300 resistance.

If not, there is a risk of more losses below 0.7050. The next major support is near the 0.7000 level. Any more losses may perhaps push AUD/USD towards the 0.6920 support zone.

Looking at EUR/USD, the pair is struggling to recover above the 1.0600 level. Similarly, GBP/USD is facing an uphill task near the 1.2600 zone.

Economic Releases

  • US ADP Employment Change for April 2022 - Forecast 395K, versus 455K previous.
  • US ISM Services Index for April 2022 – Forecast 58.5, versus 58.3 previous.