AUD/USD Targets More Gains, Up next is Fed Interest Rate Hike Decision.
- The AUD/USD pair climbed back over the 0.6980 barrier level.
- On the 4-hours chart, it broke a crucial negative trend line that served as resistance near 0.6825.
- The EUR/USD pair is still having trouble rising above the 1.0280 resistance.
- Today’s Fed interest rate announcement is planned (forecast 2.5 percent, versus 1.75 percent previous).
Technical Analysis of AUD/USD
In relation to the US dollar, the Australian dollar established a base above the 0.6680 mark. The AUD/USD pair bounced back over the 0.6800 barrier level to enter the positive territory.
The pair was able to go above the 0.6820 and 0.6850 resistance levels, according to the 4-hours chart. A crucial bearish trend line with resistance near 0.6825 was broken above.
The price of the pair continued to rise over 0.6980 and the 200 simple moving average (green, 4-hours). It reached a high of 0.6983 and finished much higher than the 100 simple moving average (red, 4-hours).
The pair is seeing resistance near the 0.6980 level on the upswing. The key resistance is located close to 0.7000. A confirmed close above 0.7000 might pave the way for a gradual increased gain.
The next significant barrier might be close to the 0.7050 mark, above which the pair might increase to 0.7120. The pair could correct lower and dip below 0.6900 if there is no upside break. Below 0.6880, where there is a strong support level, the pair may return to the area around 0.6800. A loss would push the pair closer to the 0.6680 swing zone.
For EUR/USD, the pair is currently struggling with a significant obstacle close to the 1.0280 level and continues to be at risk of another decline as the Fed interest rate announcement draws near.
Economic Release to Trade Today
- US Durable Goods Orders for June 2022 are expected to decrease by 0.4% from the previous month’s increase of 0.8%.
- US Pending Home Sales for June 2022 (YoY) are expected to decline by 7.3% as opposed to the previous month’s increase of 13.6%.
- Forecast for the Fed Interest Rate Decision is 2.5 percent, vs 1.75% previous.
Author: Amogo Solomon
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