Technical Bias: Bullish
- AUDUSD falls as home loans data disappoints
- Near term bias remains bullish
- Selling near current levels look good
The Australian Dollar (AUD) extended downside movement against the US Dollar (USD) on Friday, dragging the price of AUDUSD to less than 0.7700. The technical bias remains bullish in short term due to consistent Higher Highs in the recent upward rallies on small timeframes.
As of this writing, the pair is being traded near 0.7688. A hurdle can be seen around 0.7700, the psychological number ahead of 0.7737, the high of the last upward rally as demonstrated in the following chart.
On the downside, the pair is expected to find a support near 0.7658, the low of the last dip on hourly timeframe ahead of 0.7532, the low of the last major correction on daily chart. The technical bias will remain bullish as long as the 0.7532 support area is intact.
Australia Home Loans
Home loans in Australia fell down sharply by 1.2% in February as compared to -1.7% in the month before, down beating the average forecast of 3.0%. Generally speaking, higher home loans are considered positive for the economy thus a worse than expected actual outcome increased selling pressure in the price of AUDUSD, opening doors for more dips below the 0.7500 handle.
Considering the overall technical and fundamental outlook, selling the pair around current levels appears to be a good strategy in short to medium term. The trade should however be stopped out on a daily closing above the 0.7737 resistance area.
Trade global forex with the best ECN broker of 2021*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about making your money go further with FXOpen.
* FXOpen International, best ECN broker of 2021, according to the IAFT