AUD/USD Facing Crucial Hurdle, Can It Surpass 0.7000?
- AUD/USD is slowly rising and trading above the 0.6920 pivot level.
- An ascending channel is in place with support at 0.6870 on the 4-hours chart.
- Both EUR/USD and GBP/USD extended gains above 1.1300 and 1.2550 respectively.
- The US Initial Jobless Claims in the week ending July 04, 2020 could decline from 1,427K to 1,375K.
AUD/USD Technical Analysis
The Aussie remained well bid above the 0.6850 level against the Japanese Yen. AUD/USD surpassed the 0.6920 resistance, but it seems to be facing a crucial hurdle near 0.7000 and 0.7040.
Looking at the 4-hours chart, the pair climbed higher steadily after it broke the 0.6920 resistance and settled above the 100 simple moving average (red, 4-hours).
The pair even surpassed the 0.6980 level and traded close to the 0.7000 resistance. A high was formed near 0.6996 before the pair corrected lower. It broke the 0.6960 level, but remained well bid above 0.6920.
The 50% Fib retracement level of the upward move from the 0.6832 low to 0.6996 high is also near the 0.6910 level. There is also an ascending channel in place with support at 0.6870 on the same chart.
On the upside, there is a crucial resistance forming near 0.7000 and 0.7040. A successful daily close above the 0.7000 level could open the doors for a sustained rise above 0.7040 and 0.7050.
Conversely, the pair might slide below 0.6920 and the channel support. The next major support is near the 0.6875 level and the 200 SMA (green).
Overall, AUD/USD must settle above 0.7000 to continue higher. Looking at EUR/USD, the pair surpassed 1.1300, and GBP/USD surged above the 1.2550 resistance.
Upcoming Economic Releases
- US Initial Jobless Claims - Forecast 1375K, versus 1427K previous.
- US Wholesale Inventories for May 2020 – Forecast -1.2%, versus -1.2% previous.