AUD/USD resuming its uptrend?
Gary Christie July 17, 2020 7:32 AM
Technical breakout remains in play
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
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