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AUD/USD Turns Red Below 0.6650, US GDP Next

Aayush Jindal

Aayush Jindal

Key Highlights

  • AUD/USD gained bearish momentum below 0.6700.
  • It traded below a major contracting triangle with support near 0.6675 on the 4-hour chart.
  • EUR/USD climbed higher and traded to a new monthly high.
  • The US Gross Domestic Product could grow 2% in Q1 2023 (Preliminary).

 

AUD/USD Technical Analysis

The Aussie Dollar started a major decline from well above 0.6700 against the US Dollar. AUD/USD traded below the 0.6680 support to move into a bearish zone.

Looking at the 4-hour chart, the pair traded below a major contracting triangle with support near 0.6675. It opened the doors for more losses below 0.6660, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).

It tested the 0.6600 support zone and started a consolidation phase. Immediate resistance on the upside is near the 0.6625 level.

The first major resistance is near the 0.6640 level. The main hurdle is now forming near the 0.6680 level and the 100 simple moving average (red, 4 hours). A clear upside break and close above the 0.6680 resistance might send the pair toward 0.6740.

The next key resistance is near the 0.6760 zone. Any more gains might send the pair toward 0.6800. On the downside, there is major support near 0.6580.

The next major support sits near the 0.6550 level, below which the pair might accelerate lower. In the stated case, AUD/USD could visit the 0.6500 support zone.

Looking at EUR/USD, the pair started a fresh increase above the 1.105 level and even spiked to a new monthly high.

Economic Releases

  • US Gross Domestic Product Q1 2023 (Preliminary) – Forecast 2% versus previous 2.6%.
  • US Initial Jobless Claims - Forecast 248K, versus 245K previous.