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AUD/USD Faces Uphill Task Near 0.7280

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Technical analysis of Forex market

Key Highlights

  • AUD/USD is facing a strong resistance near 0.7250 and 0.7280.
  • A key bullish trend line is forming with support near 0.7140 on the 4-hours chart.
  • EUR/USD might gain momentum if it settles above 1.1400.
  • Crude oil price is still holding gains above $92.00.

AUD/USD Technical Analysis

The Aussie dollar attempted to clear the 0.7250 resistance but failed against the US Dollar. AUD/USD started a downside correction after trading as high as 0.7248.

Looking at the 4-hours chart, the pair declined below the 0.7200 support level. The bears even pushed the pair below the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).

There was also a spike below the 0.7100 level. A low was formed near 0.7086 before the pair recovered losses. It climbed above 0.7150, but it is facing a strong resistance near 0.7250 and 0.7280.

A close above 0.7280 could open the doors for a strong increase. If not, there is a risk of a move below the 0.7140 support. The next major support is near 0.7120 and the 100 simple moving average (red, 4-hours), below which the pair could revisit 0.7080.

Looking at EUR/USD, the pair must settle above 1.1400 to start a decent increase. Similarly, GBP/USD must clear 1.3600 for upside continuation.

Economic Releases

  • US Initial Jobless Claims – Forecast 219K, versus 223K previous.
  • US Housing Starts for Jan 2022 (MoM) – Forecast 1.700M, versus 1.702M previous.
  • US Building Permits for Jan 2022 (MoM) – Forecast 1.760M, versus 1.885M previous.