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AUD/USD At Risk Of Breakdown Below 0.7350

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Technical analysis of Forex market

Key Highlights

  • AUD/USD started a fresh decline from well above 0.7500.
  • It traded below a key bullish trend line at 0.7520 on the 4-hours chart.
  • EUR/USD is struggling to clear the 1.1600-1.1620 resistance zone.
  • The US CPI could increase 5.3% in Oct 2021 (YoY), down from 5.4%.

AUD/USD Technical Analysis

After a steady rise, the Aussie Dollar faced sellers near 0.7560 against the US Dollar. AUD/USD started a fresh decline below the 0.7500 support zone.

Looking at the 4-hours chart, the pair traded below the key 0.7480 support. Besides, there was a break below a major bullish trend line with support at 0.7520.

The pair even traded below the 50% Fib retracement level of the upward move from the 0.7225 swing low to 0.7558 high. The pair settled below the 0.7450 level and the 100 simple moving average (red, 4-hours).

The pair tested the 61.8% Fib retracement level of the upward move from the 0.7225 swing low to 0.7558 high. An immediate support is near the 07350 level.

A close below 0.7350 could open the doors for a move towards the 0.7300 level. The next major support is near the 0.7250 level. On the upside, an immediate resistance is near the 0.7420 level.

The next major resistance is near the 0.7450 level. A close above 0.7420 and 0.7450 could open the doors for a fresh increase. In the stated case, the pair could rise towards the 0.7550 level.

Looking at EUR/USD, the pair is attempting a recovery wave, but it is still struggling to gain pace above the 1.1620 level.

Economic Releases

  • German Consumer Price Index for Oct 2021 (YoY) – Forecast +4.5%, versus +4.5% previous.
  • German Consumer Price Index for Oct 2021 (MoM) – Forecast +0.5%, versus +0.5% previous.
  • US Consumer Price Index for Oct 2021 (MoM) – Forecast +0.5%, versus +0.4% previous.
  • US Consumer Price Index for Oct 2021 (YoY) – Forecast +5.3%, versus +5.4% previous.
  • US Consumer Price Index Ex Food & Energy for Oct 2021 (YoY) – Forecast +4%, versus +4% previous.