Key Take-Aways
- Over the 0.6640 barrier, the AUD/USD pair began an upward correction.
- In the 4-hours chart, it broke through a significant negative trend line with resistance at 0.6670.
- Gains on the EUR/USD and GBP/USD surpassed significant obstacles.
- Interest rates were raised by the Fed from 4.75% to 5%.
Technical Analysis of AUD/USD
Before beginning an upward correction against the US dollar, the Australian dollar tested the 0.6565 region. The AUD/USD pair moved into a short-term positive zone after clearing the 0.6620 barrier.
In the 4-hour chart, the pair was successful in breaking through the 0.6650 resistance area. Moreover, a significant negative trend line with resistance at 0.6670 was broken.
The bearish movement from the 0.6774 swing high to 0.6564 low was retraced 50% by the Fibonacci ratio, which the bulls were able to push the pair above. Nonetheless, the 0.6750 resistance zone saw some activity from the bears.
At the 76.4% Fib retracement level of the decline from the 0.6774 swing high to 0.6564 low, it appears that the AUD/USD pair suffered. The next significant barrier is located at 0.6775. The pair may go toward the 0.6820 region if there is a clear move above the 0.6775 barrier.
If there are any further increases, the pair may move toward 0.6880 or possibly 0.68850. At the level of 0.6640 is an immediate support on the downside.
Below the 0.66220 level, where the next significant support is located, a move toward the 0.6565 level or the last swing bottom is possible.
In the near future, the EUR/USD pair may try to make further gains after surging above the important 1.0750 resistance region.
Economic News To Trade Today
- BoE Interest Rate Decision: Predicted 4.25%, up from the previous 4.0%.
- US First Jobless Claims: 201K expected, up from 192K in the prior report.
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