AUDUSD Extends Rally After US Services PMI News

FXOpen

The Australian Dollar (AUD) extended upside movement against the US Dollar (USD) on  Wednesday, increasing the price of AUDUSD to more than 0.7035 following the release of some key economic data. The technical bias remains bearish because of a Lower Low in the recent downside move.

Technical Analysis

As of this writing, the pair is being traded around 0.7039. A hurdle can be noted near 0.7076, the 50% fib level ahead of 0.7135, the 61.8% fib level and then 0.7207, the 76.4% fib level as demonstrated in our daily chart.

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On the downside, the pair is expected to find a support around 0.7017, the 38.2% fib level ahead of 0.6994, the 23.6% fib level and then 0.6826, the swing low of the last major downside move. The technical bias will remain bearish as long as the 0.7325 resistance area is intact.

US Markit Services PMI

Markit’s flash services purchasing manager’s index (PMI) came in a bit below expectations for January, at 53.7. Economists had expected an index reading of 54, according to Bloomberg. A PMI reading above 50 indicates expansion. According to the release, service-sector output grew at the weakest pace since December 2014.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair around current levels appears to be a good strategy in short to medium term

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