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AUD/USD Eyes More Upsides Above 0.7550

Aayush Jindal

Aayush Jindal

Key Highlights

  • AUD/USD gained pace above the 0.7450 resistance zone.
  • A key bullish trend line is forming with support near 0.7435 on the 4-hours chart.
  • EUR/USD is consolidating below 1.1650, and GBP/USD is stuck below 1.3800.
  • The US Gross Domestic Product could grow 5.4% in Q3 2021 (Preliminary).

 

AUD/USD Technical Analysis

The Aussie dollar started a major increase from the 0.7200 support against the US Dollar. AUD/USD cleared the 0.7320 resistance zone to move into a positive zone.

Looking at the 4-hours chart, the pair even traded above the 0.7450 level. There was a close above 0.7500, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

A high was formed near 0.7543 and the pair is now consolidating gains. The pair declined below the 0.7520 level. It tested the 23.6% Fib retracement level of the upward move from the 0.7170 swing low to 0.7543 high.

On the downside, there is a decent support forming near 0.7440 level. There is also a key bullish trend line forming with support near 0.7435 on the same chart.

The next major support is near 0.7380. It is close to the 50% Fib retracement level of the upward move from the 0.7170 swing low to 0.7543 high. A close below the 0.7380 level might push the pair towards the 0.7320 support.

On the upside, an immediate resistance is near the 0.7550 level level. The next major resistance is near the 0.7620 level, above which the pair might rise towards the 0.7700 level.

Looking at EUR/USD, the pair is still struggling to clear the 1.1650 resistance zone. Similarly, GBP/USD is facing hurdles near 1.3800.

Economic Releases

  • ECB Interest Rate Decision – Forecast 0%, versus 0% previous.
  • German Consumer Price Index for Oct 2021 (YoY) (Prelim) – Forecast +4.4%, versus +4.1% previous.
  • German Consumer Price Index for Oct 2021 (MoM) (Prelim) – Forecast +0.5%, versus 0% previous.
  • US Initial Jobless Claims - Forecast 290K, versus 290K previous.
  • US Gross Domestic Product Q3 2021 (Preliminary) – Forecast 5.4% versus previous 6.2%.