The Australian Dollar (AUD) extended upside movement against the US Dollar (USD) on Friday, increasing the price of AUDUSD to more than 0.7100 despite the release of downbeat home loans data. The technical bias will turn bullish if we get a bullish reversal around current levels.

Technical Analysis

As of this writing, the pair is being traded around 0.7118. A hurdle may be seen near 0.7152, the intraday high of yesterday ahead of 0.7223, the horizontal resistance area and then 0.7242, the swing high of the last major upside rally as demonstrated in our daily chart.

On the downside, the pair is likely to find a support around 0.6983, the swing low of the bullish pin bar which was emerged yesterday ahead of 0.6908, the horizontal support area and then 0.6828, the swing low of the last major downside move.

Australia Home Loans

The total number of home loans in Australia was up a seasonally adjusted 2.6 percent on month in December, the Australian Bureau of Statistics said on Friday – coming in at 58,552. That missed forecasts for an increase of 3.0 percent following the 1.8 percent gain in November. Investment lending added 0.6 percent to A$11.638 billion after rising 0.7 percent in the previous month. The total value of home loans advanced 0.9 percent to A$21.882 billion – slowing from 2.4 percent a month earlier.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair around 0.7050 level could be a good strategy.

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