AUD/USD Will Likely Encounter Resistance, Oil Price Experiencing Decline

Key Take-Aways

  • Near 0.6820, AUD/USD can encounter resistance.
  • The crucial parity level was tested by EUR/USD.
  • The price of crude oil started a new downward trend and traded below $100.
  • In June 2022, the US Consumer Price Index could rise by 8.8%. (YoY).

Technical Assessment of AUD/USD

When compared to the US Dollar, the Australian Dollar was unable to rise higher than the 0.6880 level. Below 0.6800, the AUD/USD currency pair started a new slide and entered a negative zone.

On the 4-hours chart, the pair even dropped well below the 100 simple moving average, which is at 0.6850. (Red, 4-hours). It is also significantly higher than the 200 simple moving average (green, 4-hours).

Before the pair began an upward reversal, a low was created close to the 0.6710 level. The pair increased by a few points and passed the 0.6750 mark. The pair is running into resistance in the 0.6800 area on the upside.

On the same chart, a significant bearish trend line is also developing, with resistance located close to 0.6820. The 0.6880 resistance level could need to be tested if there is a clear rise above the trend line. Any further gains might pave the way for a move in the direction of the 0.6950 resistance.

If not, the pair may continue to fall below the level of 0.6750. Near the 0.6720 level, there is the next significant support. The pair may drop further more into the 0.6650 level if the downside broke through below the 0.6720 support.

Looking at EUR/USD, the pair challenged a key support at 1.0000 and remained in a negative area. In a similar vein, the price of crude oil dropped and fluctuated below the $100 level.

Economic Release to Trade Today

  • US Consumer Price Index for June 2022 (MoM) is forecasted to increase by +1.1% compared to the previous +1.0%.
  • US Consumer Price Index Ex Food & Energy for June 2022 (YoY) – Forecast +5.8%, versus +6.0% previous.
  • BoC Interest Rate Decision – Forecast 2.25%, versus 1.5% 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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