FXOpen
The Australian Dollar (AUD) extended downside movement against the US Dollar (USD) on Wednesday, dragging the price of AUDUSD to less than 0.7425 following the release of some key economic news. The technical bias remains bullish because of a Higher High in the recent upside rally.
Technical Analysis
As of this writing, the pair is being traded near 0.7421. A support may be seen around 0.7385, a key horizontal support area ahead of 0.7327, another horizontal support and then 0.7300, the psychological number.
On the upside, the pair is likely to face a hurdle near 0.7484, the swing high of the recent upside move ahead of 0.7533, a huge horizontal resistance and then 0.7600, the psychological level. The technical bias will remain bullish as long as the 0.6973 support area is intact.
Australia Home Loans
Home loans in Australia fell more than expected in January, indicating that even with record low interest rates some steam may have gone out of the property market. Overall, loans fell 3.9 per cent month-on-month in January, more than the 3 per cent economists were expecting and versus a 2.7 per cent rise in December. That is the steepest fall since last May, when loans fell 8 per cent month-on-month. Home loans growth for rent and resale fell 1.6 per cent month-on-month, versus a 0.1 per cent decline in December.
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair around current levels could be a good strategy in short to medium term if we get another bearish candle on the daily chart.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.
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.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
Santa Claus Rally: How Will Christmas Impact Stock Markets in 2024
The Santa Claus rally is a well-known seasonal phenomenon where stock markets often see gains during the final trading days of December and the start of January. But what causes this year-end trend, and how does Christmas influence stock markets
GBP/USD Analysis: Pair Recovers from 7-Month Low
The GBP/USD pair dropped below the psychological level of 1.25 today, a level last seen in early May. Over the past two days, the pair has declined by more than 1.5%, driven by central bank decisions.
On
Micron Technology (MU) Stock Drops 16%
On Wednesday, Micron Technology released its quarterly earnings report after the main trading session closed. The results aligned closely with analysts' expectations: earnings per share came in at $1.79, slightly above the forecast of $1.76, while revenue met