AUD/USD Rallies Above 0.7900, Dollar Struggle Continues

Key Highlights

  • AUD/USD climbed higher above the 0.7850 and 0.7900 resistance levels.
  • It broke a major ascending channel with resistance at 0.7860 on the 4-hours chart.
  • NZD/USD also gained bullish momentum and cleared the 0.7300 resistance.
  • GBP/USD remains in a strong uptrend above 1.4000 and 1.3950.

AUD/USD Technical Analysis

After forming a support base above 0.7600, the Aussie Dollar started a fresh increase against the US Dollar. AUD/USD broke many major hurdles near 0.7750 and 0.7850 to move into a positive zone.

Looking at the 4-hours chart, the pair settled nicely above 0.7850, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

There was also a break above a major ascending channel with resistance at 0.7860. It opened the doors for more upsides above the 0.7900 level. The pair traded to a new yearly high at 0.7945.

It is currently consolidating gains, with a key support at 0.7880. The next major support is near the 0.7830 level. Any more losses might call for a test of the 0.7800 support and the channel lower trend line zone.

On the upside, the pair could rise further above the 0.7950 level. The key hurdle for the bulls is likely waiting near the 0.8000 level.

Looking at GBP/USD, the pair showing a lot of positive signs above 1.4100. Similarly, NZD/USD extended its rise above the 0.7300 resistance. Conversely, EUR/USD is still struggling to clear the 1.2200 resistance zone.

Economic Releases

  • German Gross Domestic Product for Q4 2020 (YoY) – Forecast -3.9%, versus -3.9% previous.
  • German Gross Domestic Product for Q4 2020 (QoQ) – Forecast 0.1%, versus 0.1% previous.
  • US New Home Sales Jan 2021 (MoM) – Forecast +2.1% versus +1.6% previous.