The Australian Dollar (AUD) inched higher against the US Dollar (USD) on Wednesday, increasing the price of AUDUSD to more than 0.7000 following some key economic releases. The technical bias shall remain bearish because of a lower low in the recent downside move.
AUD/USD Technical Analysis
As of this writing, the pair is being traded around 0.7103. On the upside, a resistance can be noted around 0.7137, the major horizontal resistance level ahead of 0.7198, the 38.2% Fib level resistance and then 0.7273, the trend line resistance as demonstrated in the given below daily chart.
On the downside, a support can be noted near 0.7034, an immediate trendline resistance level ahead of 0.6900, the psychological level and then 0.6824, the major horizontal support level as demonstrated in the given above chart. The technical bias shall remain bearish as long as the 0.7335 resistance area is intact.
Australian Home Loan News
In Australia, the average figure in respect of the amount taken for homes as a loan remained 0.4% in July, as compared to -1.1% during the month before, up beating the economist expectation which was 0.0%. The data is sourced from the news released by the Australian Bureau of Statistics.
The figure represents the overall trend of the housing market in Australia. It also shows the level of confidence consumers have on the strength or purchasing power of the Australian Dollar (AUD). If large amounts are taken out as home loans then this shows a positive trend for the Australia Dollar (AUD). Generally speaking, a high reading in this regard is considered as bullish for the Aussie Dollar (AUD) and vice versa.
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.