AUD/USD resuming its uptrend?

Technical breakout remains in play

Charts (5)

The US Dollar was bullish against all of its major pairs on Thursday.  

On the economic data front, Retail Sales Advance released +7.5% on month in June (+5.0% expected), from a revised +18.2% in May. Initial Jobless Claims slightly fell to 1,300K for the week ending July 11th (1,250K expected), from a revised 1,310K in the week before. Continuing Claims declined to 17,338K for the week ending July 4th (17,500K expected), from a revised 17,760K in the prior week.    

On Friday, Housing Starts for June are expected to increase to 1,180K on month, from 974K in May. Finally, the University of Michigan's Consumer Sentiment Index for the July preliminary reading is expected to rise to 79.0 on month, from 78.1 in the June final reading.       

The Euro was bullish against most of its major pairs with the exception of the CHF and USD. In Europe, the European Central Bank has announced its interest rates decision, let unchanged as expected. ECB also decided to keep pandemic bond-buying program unchanged at 1.35 trillion euros. The European Commission has reported May trade balance at 9.4 billion euros (vs 1.6 billion euros surplus in April). France's INSEE has posted final readings of June CPI at +0.2% (vs +0.1% on year expected). The U. K. Office for National Statistics has reported ILO jobless rate for the three months to May at 3.9% (vs 4.2% expected).

The Australian dollar was bearish against all of its major pairs and dropped 37 pips against the USD in Thursday's U.S. trading session. 

With the US Dollar bullish and Australian dollar bearish against their major pairs, how is the AUD/USD trading?

On a 4-hour chart, the AUD/USD is attempting to resume its prior uptrend after breaking above a symmetrical triangle continuation pattern. Key support rests at the 0.692 level near the 200-period moving average. 



Source: GAIN Capital, TradingView

Happy Trading

More from Forex

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.