The Australian Dollar (AUD) inched lower against the US Dollar (USD) on Wednesday, decreasing the price of AUDUSD to less than 0.7925 following some key economic releases. The technical bias shall remain bullish because of a higher high in the ongoing upside move.
AUD/USD Technical Analysis
As of this writing, the pair is being traded around 0.7902. A support can be noted around 0.7470, an immediate horizontal support ahead of 0.7400, the psychological number and then 0.7389, another trendline support as demonstrated in the given below chart.
On the upside, a hurdle can be noted near 0.7935, an immediate horizontal resistance level ahead of 0.8000, the psychological level and then 0.8049, the high of the last major upside rally as demonstrated in the given above chart. The technical bias shall remain bullish as long as the 0.7389 support area is intact.
US Housing Price Index
The US Federal Housing Finance Agency (FHFA) house-price index rose 0.4% in May on a seasonally-adjusted basis following a revised 0.6% gain for April to give a 6.9% annual increase. The monthly increase was slightly below consensus expectations of 0.5%. The Middle Atlantic and Mountain regions recorded monthly declines with the strongest growth recorded in West South Central at 1.0%. The overall May gain was the slowest for four months. On an annual basis, all nine divisions recorded an increase in prices with the annual increase ranging from 4.0% in the Middle Atlantic to 8.7% in the Pacific.
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.
