AUDUSD Poised for Downside Reversal After Home Loans Report

FXOpen

The Australian Dollar (AUD) inched lower against the US Dollar (USD) on Friday, decreasing the price of AUDUSD to less than 0.7550 following some key economic releases. The technical bias shall remain bullish because of a higher high in the recent upside move.

Technical Analysis

As of this writing, the pair is being traded around 0.7530. A support can be noted around 0.7470, an immediate trendline support ahead of 0.7400, the psychological number and then 0.7389, another trendline support as demonstrated with pink color in the given below chart.

AUDUSD Poised for Downside Reversal After Home Loans Report

On the upside, a hurdle can be noted near 0.7559, an immediate trendline resistance level ahead of 0.7588, the 61.8% fib level as demonstrated in the given above chart and then 0.7600, a key psychological level.  A break and daily closing above the 0.7600 resistance shall incite renewed buying interest, validating a move towards the 0.7720 resistance zone. The technical bias shall remain bearish as long as the 0.7600 resistance area is intact.

Australia Home Loans

Home financing in Australia declined in April for a third straight month, government data showed Friday. The number of home loans issued by Australian authorities fell by a seasonally adjusted 1.9% in April, following a revised 0.9% drop the previous month, the national statistics bureau said in a report on Monday. Analysts in a median estimate called for a decline 0.9%. Investment lending for homes, a gauge of fixed residential property loans, dropped 2.3% from March. This component rose 0.8% the previous month.

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.

 

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

EUR/USD, GBP/USD, and USD/JPY Analysis: Dollar on the Rise amid Good US Employment Data AUD/JPY Analysis: Rate Falls to Important Support EUR/USD, GBP/USD, USD/JPY Analysis: Dollar Stable Despite Weak Employment Data Will rate hikes end when 2023 ends? USD/JPY, USD/CAD, and EUR/USD Analysis: The US Dollar Corrected in Anticipation of PMI Data Release

Latest articles

Forex PAMM

Overview of FXOpen's Best-performing PAMM Accounts of November 2023

According to the results of November, we can single out the most promising PAMM providers for investment and monitoring for the future. First of all, one should consider accounts with good profitability and low drawdowns. In this PAMM-review on the

Forex Analysis

EUR/USD, GBP/USD, and USD/JPY Analysis: Dollar on the Rise amid Good US Employment Data

The US Federal Reserve will publish its interest rate decision on Wednesday, December 13th. The American regulator is not expected to take steps towards tightening or easing monetary policy, given the strong November labour market report published last Friday. Thus,

Commodities

Crude Oil Ends Freefall, but Is It Back in the Black?

In the early stretch of December, the WTI Crude Oil market experienced a sudden and substantial downturn, sending shockwaves through the financial landscape. From a robust $77.71 per barrel on November 29, the value plunged to just over $69.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.