AUDUSD May Get Huge Support At 0.7000

FXOpen

The Australian Dollar (AUD) extended downside movement against the US Dollar (US Dollar) on Monday, dragging the price of AUDUSD to less than even 0.7135 following the release of some key economic releases from Australia. The technical bias remains bearish due to a Lower Low and Lower High in the recent wave.

Technical Analysis

As of this writing, the pair is being traded around0.7137. A support may be noted around0.7039, the swing low of the recent downside move ahead of 0.7000, a major psychological number as demonstrated in the following daily chart. A break and daily closing below the 0.7000 support area could incite renewed selling pressure, validating a dip towards the 0.6600 support area in the long run.

AUDUSD May Get Huge Support At 0.7000

On the upside, the pair is expected to face a hurdle near 0.7230, the 23.6% fib level ahead of 0.7348, the 38.2% fib level and then 0.7443, the 50% fib level. The technical bias will remain bearish as long as the 0.7143 resistance area is intact.

New Home Sales Report

According to the HIA’s new home sales report, the number of new homes sales declined modestly in July, dropping 0.4 per cent over the month. Over the three months to July this year detached house sales fell by 2.8 per cent to be 3.4 per cent lower when compared to the corresponding period in 2014. Meanwhile, apartment sales fell 4.2 per cent in July following a 2.9 per cent dip in June. Generally speaking, higher home sales reading is considered positive for the economy and vice versa.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair around current levels appears to be a good strategy in short to medium term if we get a valid bullish pin bar, hammer or bullish engulfing candle around the current levels.

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.

Latest from Forex Analysis

Commodities and European currencies Test Key Supports EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News

Latest articles

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold
Financial Market News

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • NIKKEI-225 Analysis Indicates Possibility

Forex Analysis

Commodities and European currencies Test Key Supports

On the eve of the Easter holidays, the main currency pairs have slightly slowed down the development of the main trends and are consolidating near key ranges, the breakdown of which could provoke a change in the vectors of medium-term

Shares

Stock Market Analysis: NVDA Losing Leadership?

Since the start of the week, the S&P-500 Index (US500) is up about 0.58% while NVDA's share price is down about 3.8%. This is a worrying sign for Nvidia stock investors — could it be a sign

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. 65.68% 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.