Key Highlights
- AUD/USD declined below 0.6650 and tested the 0.6525 zone.
- A major bearish trend line is forming with resistance near 0.6610 on the 4-hour chart.
- EUR/USD is consolidating losses near the 1.0900 zone.
- Crude oil prices might start another increase above the $75.50 resistance.
AUD/USD Technical Analysis
The Aussie Dollar started a major decline from well above 0.6800 against the US Dollar. AUD/USD dropped below the 0.6650 and 1.0920 levels to enter a bearish zone.
Looking at the 4-hour chart, the pair settled below the 0.6620 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours). Finally, the bulls appeared near the 0.6525 level.
A low was formed near 0.6525 and the pair is now attempting a recovery wave. There was an increase above the 0.6575 resistance. It cleared the 23.6% Fib retracement level of the downward move from the 0.6728 swing high to the 0.6525 low.
On the upside, the pair is facing resistance near the 0.6610 level. There is also a major bearish trend line forming with resistance near 0.6610 on the same chart.
The next key resistance is near the 0.6650 zone or the 61.8% Fib retracement level of the downward move from the 0.6728 swing high to the 0.6525 low. A close above the 0.6650 zone could open the doors for more upsides. The next stop for the bulls might be 0.6685.
If there is no move above 0.6610, the pair might continue to move down. Immediate support is seen near the 0.6575 level. The first major support is near the 0.6650 level.
The next major support sits near the 0.6525 region. A downside break below the 0.6525 zone could spark another sharp decline. The next major support is 0.6465 below which the pair might decline and test 0.6420.
Looking at EUR/USD, the pair is consolidating losses near 1.0900 and might attempt a recovery wave in the near term.
Economic Releases
- Euro Zone Consumer Confidence for Jan 2023 (Preliminary) – Forecast -14.3, versus -15 previous.
