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AUD/USD Eyes More Upsides, Fed Decision Next

Key Highlights

  • AUD/USD recovered above the 0.6980 resistance zone.
  • It broke a key bearish trend line with resistance near 0.6825 on the 4-hours chart.
  • EUR/USD is still struggling to recover above the 1.0280 resistance.
  • The Fed interest rate decision is scheduled today (forecast 2.5%, versus 1.75% previous).


AUD/USD Technical Analysis

The Aussie dollar formed a base above the 0.6680 level against the US Dollar. AUD/USD recovered above the 0.6800 resistance zone to move into a positive zone.

Looking at the 4-hours chart, the pair was able to climb above the 0.6820 and 0.6850 resistance levels. There was a break above a key bearish trend line with resistance near 0.6825.

The pair extended its increase above the 0.6900 level and the 200 simple moving average (green, 4-hours). It traded as high as 0.6983 and settled well above the 100 simple moving average (red, 4-hours).

On the upside, the pair is facing resistance near the 0.6980 level. The main barrier is near the 0.7000 level. A close above the 0.7000 level could open the doors for a steady increase.

The next major resistance could be near the 0.7050 level, above which the pair could rise to 0.7120. If there is no upside break, the pair could correct lower and dip below 0.6900. The next major support is 0.6880, below which the pair could revisit the 0.6800 zone. Any more losses might send the pair towards the 0.6680 swing zone.

Looking at EUR/USD, the pair is still facing a major barrier near the 1.0280 level and remains at a risk of another drop as it approaches the Fed interest rate decision.

Economic Releases

  • US Durable Goods Orders for June 2022 – Forecast -0.4% versus +0.8% previous.
  • US Pending Home Sales for June 2022 (YoY) - Forecast -7.3%, versus -13.6% previous.
  • Fed Interest Rate Decision - Forecast 2.5%, versus 1.75% previous.