AUD/USD Outperforms, EUR/USD Sets New 2-Year High

Key Highlights

• AUD/USD is holding gains above the 0.7550 support zone.
• A crucial bullish trend line is forming with support near 0.7550 on the 4-hours chart.
• EUR/USD extended gains and traded to a new 2-year high above 1.2270.
• NZD/USD is also showing positive signs above 0.7100.

AUD/USD Technical Analysis

In the past few days, the Aussie Dollar followed a bullish path above 0.7400 against the US Dollar. AUD/USD broke many hurdles near 0.7500 and 0.7520 to move further into a positive zone.

Looking at the 4-hours chart, the pair traded as high as 0.7639 and settled well above the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).

Recently, there was a downside correction below the 0.7550 support level. However, dips were limited and the pair bounced back from 0.7500. The pair is now trading nicely above 0.7550. There is also a crucial bullish trend line forming with support near 0.7550 on the same chart.

On the upside, the pair is facing hurdles near 0.7640 and 0.7650. A clear close above 0.7650 could open the doors for more gains towards 0.7700 and 0.7720.

If there is a downside correction, AUD/USD is likely to find bids near the 0.7550 support. The next key support is near the 0.7520 level and the 100 SMA. Any more losses could lead the pair towards the 0.7440 support and the 200 SMA.

Looking at EUR/USD, the pair extended its rise above the 1.2250 resistance and traded to a new 2-year high above 1.2270. Conversely, GBP/USD is still struggling to clear the 1.3620 resistance.

Economic Releases

• US Pending Home Sales for Nov 2020 (MoM) – Forecast 0%, versus -1.1% previous.