AUD/USD Holding Gains Above 0.7200, GBP/USD Outperforms
- AUD/USD settled above 0.7200, but it is facing hurdles near 0.7300 and 0.7340.
- GBP/USD outperformed and rallied above the 1.3200 resistance zone.
- Gold price settled below the $1,900 support after a sharp decline from $1,960.
- Crude oil price is showing positive signs above the $39.20 and $38.50 support levels.
AUD/USD Technical Analysis
The Aussie Dollar started a strong rise from the 0.7050 swing low against the US Dollar. AUD/USD broke the 0.7120 and 0.7200 resistance levels to move into a positive zone.
Looking at the 4-hours chart, the pair even settled above the 0.7200 level, the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours). There was a break above a connecting resistance trend line at 0.7240, opening the doors for more upsides.
The pair climbed above 0.7300 and traded as high 0.7339. Recently, there was a minor downside correction, but the pair remained stable above the 0.7250 and 0.7240 support levels.
The main support is now forming near the 0.7200 level, below which the pair could decline towards the 0.7120 support level and the 100 simple moving average (red, 4-hours). On the upside, the pair is facing hurdles near 0.7320 and 0.7340.
A clear break above 0.7340 could open the doors for a push towards the 0.7400 resistance. Looking at EUR/USD, the pair settled below the 1.1850 pivot level.
Conversely, there was a strong rise in GBP/USD above the 1.3200 resistance level after the UK Claimant count changed -29.8K, better than the market forecast of 36K.
Upcoming Economic Releases
- NIESR GDP Estimate (3M) Oct 2020 – Forecast 20.1%, versus 15.2%.
- The European Central Bank's President Christine Lagarde’s speech.