AUD/USD Restarts Decline, Fed Decision Next
- AUD/USD started a fresh decline from the 0.7280 resistance zone.
- It traded below a crucial bullish trend line with support near 0.7200 on the 4-hours chart.
- GBP/USD tested 1.2000, and EUR/USD could extend losses.
- The Fed interest rate decision is scheduled today (forecast 1.5%, versus 1.0% previous).
AUD/USD Technical Analysis
The Aussie Dollar struggled above the 0.7250 level against the US Dollar. AUD/USD started a major decline after there was a clear move below the 0.7220 level.
Looking at the 4-hours chart, the pair declined below a crucial bullish trend line with support near 0.7200. The bears gained strength for a move below the 0.7150 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
The bears even pushed the pair below the 76.4% Fib retracement level of the upward move from the 0.6828 swing low to 0.7282 high.
The pair settled below the 0.7000 level. The first key support is near the 0.6850 level. The next major support is near the 0.6720 level. It is close to the 1.236 Fib extension level of the upward move from the 0.6828 swing low to 0.7282 high.
Any more losses might send the pair towards the 0.6650 support. On the upside, an immediate resistance is near the 0.6950 level.
The next major barrier could be near the 0.7000 level. A clear move above the 0.7000 level might start a steady recovery wave towards the 0.7120 level in the near term.
Looking at GBP/USD, the pair gained bearish momentum below the 1.2120 and even tested the key 1.2000 support zone.
- US Retail Sales for May 2022 (MoM) – Forecast +0.2%, versus +0.9% previous.
- Fed Interest Rate Decision - Forecast 1.5%, versus 1.0% previous.