The Australian Dollar (AUD) slid down against the US Dollar (USD) on Wednesday, decreasing the price of AUDUSD to less than 0.7200 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 0.7192. On the downside, a support can be noted around 0.7167, the immediate horizontal support ahead of 0.7132 the  38.2% Fib level support and then 0.7089, the key horizontal support level as demonstrated in the given below daily chart.

On the upside, a hurdle can be noted near 0.7307, an immediate 61.8% Fib level ahead of 0.7357, the trendline resistance and then 0.7482, the major horizontal resistance in the given above chart. The technical bias shall remain bullish as long as the 0.7129 support area is intact.

USD ISMI Prices Paid News

In the US, the figure concerning the price index of ISMI remained  72.1 in August, as compared to 73.2 during the month before, up beating the economist expectation which was 70.2. The data is copied from the news released by the US Institute for Supply Management.

It shows the prevailing condition of the manufacturing market of the country. The figure is derived after taking into account various elements of the market such as new orders placed, the estimated rate of production for the future, employment rate, available inventories, and deliveries made so far.

The  ISM figure is considered as a sensitive indicator of the US economy. It is also taken as an indicator of the sentiment of business concerning the inflation that may occur in a due course of time. Generally speaking, a high reading in this regard is taken as a bullish trend for the US Dollar (USD) and vice versa.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair around current levels may be a good strategy in short to medium term.