Key Highlights
- AUD/USD started a fresh increase above the 0.7200 pivot zone.
- A bullish trend line is forming with support at 0.7190 on the 4-hour chart.
- EUR/USD could gain strength if it clears 1.1800 and 1.1840.
- USD/JPY started a consolidation phase below the 158.00 resistance.
AUD/USD Technical Analysis
The Aussie Dollar remained supported above 0.7120 against the US Dollar. AUD/USD started a fresh increase above the 0.7180 and 0.7200 resistance levels.
Looking at the 4-hour chart, the pair settled above the 0.7200 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). A high was formed at 0.7278 before there was a pullback.
The pair dipped below 0.7250 and tested the 50% Fib retracement level of the upward move from the 0.7135 swing low to the 0.7278 high. The bulls remained active above 0.7200 and the pair recovered losses.
There is also a bullish trend line forming with support at 0.7190. On the upside, the pair faces resistance at 0.7275. The first major resistance sits at 0.7300. The main resistance could be 0.7320.
A close above 0.7320 could open doors for gains above 0.7365. In the stated case, the bulls could aim for a move to 0.7450. If there is a downside correction, the pair could find support at 0.7220. The next support could be near the trend line or 0.7200.
A close below 0.7190 might push the pair toward 0.7135. Any more losses could initiate a fresh move to 0.7080 and the 200 simple moving average (green, 4-hour).
Looking at EUR/USD, the pair is showing positive signs, and the bulls could aim for a move above the 1.1840 resistance.
Upcoming Key Economic Events:
- US Consumer Price Index for April 2026 (MoM) – Forecast +0.6%, versus +0.9% previous.
- US Consumer Price Index for April 2026 (YoY) – Forecast +3.7%, versus +3.3% previous.
- US Consumer Price Index Ex Food & Energy for April 2026 (YoY) – Forecast +2.7%, versus +2.6% previous.
