AUD/USD Has Potential for More Upside Gains, US Consumer Price Index Data Next

Key Take-Aways

  • The AUD/USD exchange rate rose above 0.7000 before declining.
  • On the 4-hours chart, a significant breakout pattern is developing with resistance located near 0.6980.
  • For EUR/USD, a significant resistance is still present close to the 1.0280 level.
  • In July 2022, the US Consumer Price Index could rise by 8.7%. (YoY).

Technical Analysis of AUD/USD

Over the 0.6900 mark, the Australian dollar started to rise steadily against the US dollar. The resistance level of 0.6950 was overcome by AUD/USD, allowing it to enter a bullish zone.

The pair was able to close above the 0.6950 level, the 100 simple moving average (4-hours, red), and the 200 simple moving average, as shown on the 4-hours chart (green, 4-hours).

The resistance area of 0.7000 was clearly broken. Before the pair began a downward reversal, it reached a high of 0.7046. Below the 0.6950 support, there was a significant loss, although the bulls were active close to the 0.6870 level.

The pair is currently back over 0.6940 and looking to rise further. The pair is encountering resistance near the 0.6970 level on the upswing. On the same chart, a significant breakout pattern is also developing with resistance located close to 0.6980.

Near the 0.7000 level is the next significant resistance, and if this level is crossed, the pair may continue to rise. In the aforementioned scenario, the pair may increase in the near term toward the 0.7050 resistance region.

The first significant support on the downside is located close to the 0.6920 mark. Losses can increase if the downside breaks through the 0.6920 support level. Near 0.6860 is the next significant support. Any more losses might push the pair closer to the 0.6800 level.

Looking at EUR/USD, the pair is continuing trading in a range and encounters a significant barrier close to the 1.0280 area, which if crossed might cause it to surge higher.

Economic News to Trade Today

  • US Consumer Price Index for July 2022 (MoM): Forecast +0.2%, compared to +1.3% in the previous month.
  • US Consumer Price Index for July 2022 (YoY): Forecast +8.7%, compared to +9.1% previous.
  • US Consumer Price Index for Ex Food & Energy for July 2022 (YoY): Forecast +6.1%, compared to +5.9% previous.
Author:
Amogo Solomon is a Broker-Dealer/Market Research analyst and writer in ACT Brokers with a background in Computer Science, Data Analytics, and Forex Broker Dealing. He specializes in Forex Dealing, markets Analysis, Currency research, forex fundamental and technical analysis, and Monitoring of Forex trends, Stocks, Equities, Cryptos, and Commodities. He possesses strong technical and analytical skills and is well known for his entertaining and informative analysis of the global economy, fiat currency, commodities, Stocks, Indexes, Futures, and Options markets. He held a Bachelor's degree in Computer Science and Nanodegree in Programming for Data Science Enterprise.

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