The Australian Dollar (AUD) has gained traction against the US Dollar (USD), breaking above the crucial 0.6700 resistance level. This surge comes after a steady increase from the 0.6620 level. The AUD/USD pair managed to surpass several obstacles, including the 0.6650 and 0.6700 levels, putting it in a positive zone.
Examining the 4-hour chart, we can see that the pair not only settled above the 0.6700 level but also surpassed the 100 simple moving average (red, 4 hours) and the 200 simple moving average (green, 4 hours). However, there was a slight bearish reaction near the 0.6775 level, leading to a consolidation of gains before the release of the US Gross Domestic Product (GDP) data.
A connecting bullish trend line is forming with support near 0.6745 on the same chart. This trend line could potentially act as a crucial support level. In the event that the pair drops below this support, the next major level of support to watch for is at 0.6690. A breach of this level may lead to a test of the 100 simple moving average (red, 4 hours) at 0.6630.
On the upside, immediate resistance is expected near the 0.6775 level. However, if the pair manages to close above the 0.6800 zone, it could pave the way for further upside potential. The next significant resistance to watch for would then be near the 0.6800 level, with the potential for the bulls to target the 0.6880 level.
While focusing on other major currency pairs, the EUR/USD and GBP/USD, we observe that both are consolidating above key support zones. The EUR/USD pair struggled to clear the 1.1000 resistance level but has managed to consolidate gains above the 1.0860 level. On the other hand, the GBP/USD pair remains firm above its key support zone.
In terms of economic releases, the market will be closely watching the US Initial Jobless Claims report. The forecast suggests an expectation of 215K compared to the previous figure of 202K. Additionally, the US GDP for Q3 2023 (Preliminary) is also anticipated, with a forecast of 5.2% growth, consistent with the previous release.
The AUD/USD pair has experienced a significant surge above key resistance levels, indicating a positive momentum. Despite facing a slight bearish reaction, the pair has consolidated its gains and remains in a positive zone. Traders should closely monitor the next major support and resistance levels for potential trading opportunities.