AUD/USD Recovery Faces Headwinds: Upside Still Restricted – Action Forex

Key Highlights

• AUD/USD extended losses and tested the 0.6440 support.
• It recovered above a connecting bearish trend line with resistance at 0.6480 on the 4-hour chart.
• Bitcoin extended gains and traded to a new all-time high above $94,000.
• EUR/USD is correcting losses and trading near the 1.0550 zone.

AUD/USD Technical Analysis

The Aussie Dollar started a fresh decline below the 0.6550 support against the US Dollar. AUD/USD tested the 0.6440 zone and is currently attempting to recover.

Looking at the 4-hour chart, the pair settled below the 0.6550 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). Finally, a low was formed at 0.6440 and the pair corrected above the 0.6500 resistance.

It cleared a connecting bearish trend line with resistance at 0.6480 on the same chart. There was a move above the 23.6% Fib retracement level of the downward move from the 0.6687 swing high to the 0.6440 low.

On the upside, the pair could face resistance near the 0.6550 level. A close above the 0.6550 level could set the tone for another increase. The next major resistance could be 0.6630, above which the price could climb higher toward the 0.6660 resistance.

On the downside, immediate support sits near the 0.6480 level. The next key support sits near the 0.6440 level. Any more losses could send the pair toward the 0.6400 level or even 0.6350 in the near term.

Looking at Bitcoin, the price gained traction for a new all-time high above $94,000 and might continue to move up.

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