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Aayush Jindal

Key Highlights

  • AUD/USD is following a bearish path and it broke the 0.7400 support.
  • A key bearish trend line is forming with resistance near 0.7410 on the 4-hours chart.
  • EUR/USD remains well below 1.1850, GBP/USD accelerated lower below 1.3700.
  • Crude oil price declined heavily below the $70.00 support zone.

AUD/USD Technical Analysis

The Aussie Dollar started a steady decline from well above 0.7500 against the US Dollar. AUD/USD broke the 0.7400 support zone to move further into a bearish zone.

Looking at the 4-hours chart, the pair gained bearish momentum below 0.7400 and 0.7380. The pair even settled well below 0.7400, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

The pair is facing resistance near the 0.7355 level. It is close to the 23.6% Fib retracement level of the recent decline from the 0.7503 swing high to 0.7299 low.

The main resistance is now forming near the 0.7400 level. It is near the 50% Fib retracement level of the recent decline from the 0.7503 swing high to 0.7299 low. There is also a key bearish trend line forming with resistance near 0.7410 on the same chart.

To start a strong recovery, the pair must settle above 0.7400. Conversely, the pair might continue to move down below 0.7300. The next major support is near the 0.7250 level.

Looking at EUR/USD, the pair is still trading in a bearish zone below 1.1850. Besides, GBP/USD accelerated losses below the 1.3700 level.

Economic Releases

  • Canada’s New Housing Price Index (NHPI) for June 2021 (MoM) - Forecast +1.8%, versus +1.4% previous.