The Australian Dollar (AUD) inched lower against the US Dollar (USD) on Wednesday, decreasing the price of AUDUSD to less than 0.7800 following some key economic releases. The technical bias shall remain bullish because of a higher high in the recent upside move.
AUD/USD Technical Analysis
As of this writing, the pair is being traded around 0.7763. A support can be noted around 0.7500, an immediate horizontal support ahead of 0.7450 the psychological number and then 0.7367, another key horizontal support as demonstrated in the given below chart.
On the upside, a hurdle can be noted near 0.8090, an immediate horizontal resistance level ahead of 0.8100, the psychological level and then 0.8249, the high of the last major upside rally as demonstrated in the given above chart. The technical bias shall remain bearish as long as the 0.8024 resistance area is intact.
US Monthly Budget Statement News
In US, the monthly budget statement rate remained $-209B in March, as compared to $-215B during the month before, up beating the economist expectation which was $-194B. The data is sourced from a news released by the US Financial Management Service. This data is considered as an indicator of financial activities of federal entities such as Federal Reserve Bank and disbursing officers. Generally speaking if the figure for receipts is higher than budgeted, it is considered as bullish for the US Dollar (USD), whereas a decreased in receipts indicates a bearish trend for the US Dollar (USD).
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.