Forex Technical Analysis

The Australian dollar was down four days this week, dropping to fresh one-year lows as it was trading at 0.7050 during the US session, down 0.5% on the day.

Sentiment in the stock market deteriorated notably over the previous days, undermined by the more-than-expected hawkish Powell and the new COVID variant Omicron.

The shared currency continued to be sold against other major currencies, resulting in a decline of the EURJPY cross to the main support level again.

On Tuesday, the dollar dropped sharply as sentiment deteriorated, leading to a decline in both US yields and the US dollar. Ahead of the US session, the EURUSD pair advanced 0.7% and traded near 1.13650.

Most of the assets erased some of Friday's losses, but both gold and silver were trading weaker ahead of the US session. with silver dropping nearly half a percent, trading slightly above the 23 USD level.

The EURAUD pair advanced on Friday, posting a 0.5% gain during the EU session as the Australian dollar declined, while the EURUSD pair was trying to consolidate above 1.12.