AUD/USD Faces Uphill Task Above 0.7200
- AUD/USD recovered above the 0.7050 resistance zone.
- It broke a key bearish trend line at 0.7100 on the 4-hours chart.
- EUR/USD struggled near 1.0800, and GBP/USD is facing resistance above 1.2650.
- The US ISM Manufacturing Index could drop from 55.4 to 54.5 in May 2022.
AUD/USD Technical Analysis
The Aussie Dollar formed a base above 0.6850 against the US Dollar. AUD/USD started a steady increase above the 0.7000 resistance and moved into a positive zone.
Looking at the 4-hours chart, the pair cleared the 0.7050 hurdle, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
Besides, there was a break above a key bearish trend line at 0.7100 on the same chart. The pair even surpassed the 76.4% Fib retracement level of the downward move from the 0.7267 swing high to 0.6828 low.
The next major barrier could be near the 0.7200 level. The main resistance sits near the 0.7260 level, above which the pair could start a major increase.
If there is a downside correction, the pair might find bids near the 0.7100 level. The next major support sits near the 0.7040 level and the 100 simple moving average (red, 4-hours). A downside break below the 0.7040 support could send the pair towards the 0.6950 support. The next key support is near 0.6880.
Looking at EUR/USD, the pair struggled to clear the 1.0800 resistance zone and corrected lower. Similarly, GBP/USD is facing resistance near 1.2650 and 1.2660.
- US ISM Manufacturing Index for May 2022 – Forecast 54.5, versus 55.4 previous.
- BoC Interest Rate Decision – Forecast 1.5%, versus 1.0% previous.