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AUD/USD Remains Well Supported Above 0.6200

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Aayush Jindal

Key Highlights

  • AUD/USD followed a positive path and settled above 0.6200.
  • A key bullish trend line is forming with support at 0.6225 on the 4-hours chart.
  • EUR/USD and GBP/USD are consolidating below key resistance levels.
  • The US Manufacturing PMI is likely to drop from 48.5 to 37.0 in April 2020 (Preliminary).

AUD/USD Technical Analysis

Earlier this month, the Aussie Dollar gained bullish momentum above the key 0.6200 resistance against the US Dollar. AUD/USD even traded above 0.6400 before starting a downside correction.

Looking at the 4-hours chart, the pair traded as high as 0.6444 and settled well above both the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).

Recently, there was a downside correction below the 0.6350 support level. The pair even tested the 38.2% Fib retracement level of the key upward move from the 0.5979 low to 0.6444 high.

However, there is a strong support forming near the 0.6220 and 0.6200 levels. There is also a key bullish trend line forming with support at 0.6225 on the same chart.

More importantly, the 50% Fib retracement level of the key upward move from the 0.5979 low to 0.6444 high is near 0.6210 along with the 100 simple moving average (red, 4-hours).

Therefore, the AUD/USD pair remains well supported as long as it is above the 0.6200 area. Any further losses could lead it towards the 0.6000 handle. Conversely, there are chances of a fresh increase above the 0.6350 and 0.6400 resistance levels in the near term.

Looking at EUR/USD, the pair is still struggling to clear the 1.0920 and 1.0950 resistance levels. GBP/USD is also facing hurdles near 1.2400-1.2420.

Upcoming Economic Releases

  • Germany’s Manufacturing PMI for April 2020 (Preliminary) - Forecast 39.0, versus 45.4 previous.
  • Germany’s Services PMI for April 2020 (Preliminary) - Forecast 28.5, versus 31.7 previous.
  • Euro Zone Manufacturing PMI April 2020 (Preliminary) – Forecast 39.2, versus 44.5 previous.
  • Euro Zone Services PMI for April 2020 (Preliminary) – Forecast 23.8, versus 26.4 previous.
  • UK Manufacturing PMI for April 2020 (Preliminary) – Forecast 42.0, versus 47.8 previous.
  • UK Services PMI for April 2020 (Preliminary) – Forecast 29.0, versus 34.5 previous.
  • US Manufacturing PMI for April 2020 (Preliminary) – Forecast 37.0, versus 48.5 previous.
  • US Services PMI for April 2020 (Preliminary) – Forecast 32.5, versus 39.8 previous.
  • US Initial Jobless Claims - Forecast 4150K, versus 5245K previous.
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