The price of AUD/USD Is exposed to Further Losses, Crude Oil Price Gaining
- A correction to the upside is being attempted by AUD/USD from the 0.6850 support.
- On the 4-hour chart, it is encountering resistance at 0.7000 and 0.7020.
- It’s possible that the EUR/USD will keep falling toward 1.0620.
- The number of new unemployment claims in the US could rise from 183K to 190K.
Technical Analysis of AUD/USD
From the 0.7150 resistance level against the US Dollar, the Australian Dollar fell. Before the bulls showed up, the AUD/USD even dipped below the 0.7000 mark.
The pair dropped as low as 0.6855 on the 4-hour chart before beginning an upward correction. The values of 0.6880 and 0.6900 were moved upward. Even so, the price pair ended above the 200 SMA.
The pair is encountering resistance near the 0.7000 ceiling and the 100 simple moving average on the upward. It is very near the 50% Fib retracement level of the decline from the 0.6855 low to the 0.7157 swing high.
Near the 0.7050 level comes the next significant obstacle. A definite move above the 0.7050 resistance may signal the beginning of a solid climb up to the 0.7120 resistance area.
Any further increases might pave the way for a move in the direction of 0.7180. The pair’s next significant obstacle is close to 0.7200; if it is cleared, the 0.7250 resistance area may be reached.
If there is no increase above 0.7000, the pair may start to fall again. A strong area of support is close to the 0.6920 mark. The area around 0.6850 is the next significant support. The pair may fall toward the 0.6760 level if there is a downward break.
With regard to the price of crude oil, there was a respectable recovery wave, and the price was able to surpass the $76.50 resistance area.
Economic News To Trade Today
- US Initial Jobless Claims: 190K expected, up from 183K in the previous period.
- German Consumer Price Index for January 2023 (YoY): Forecast +8.9%, up from +8.6% in the preceding period.
- Forecast +0.9% for the German Consumer Price Index for January 2023 (MoM), vs -0.8% previous.
Author: Amogo Solomon
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