AUDUSD Poised for Bearish Reversal Amid US Consumer Sentiment News

The Australian Dollar (AUD) inched lower against the US Dollar (USD) on Monday, decreasing the price of AUDUSD to less than 0.7650 following some key economic releases. The technical bias shall remain bullish because of a higher high in the recent upside move.

Technical Analysis

As of this writing, the pair is being traded around 0.7612. A support can be noted around 0.7470, an immediate trendline support ahead of 0.7400, the psychological number and then 0.7389, another trendline support as demonstrated in the given below chart.

On the upside, a hurdle can be noted near 0.7630, an immediate trendline resistance level ahead of 0.7700, the psychological level and then 0.7749, the high of the last major upside rally as demonstrated in the given above chart.The technical bias shall remain bullish as long as the 0.7749 resistance area is intact.

US Consumer Sentiment

Consumers were much less optimistic than economists had expected in June, according to a preliminary reading. The University of Michigan’s Consumer Sentiment Index dropped to 94.5 in June, well below economists’ expectations for a reading of 97.1 during the month, according to Thomson Reuters consensus estimates.

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.

 

usmanahmed7290@gmail.com'

Usman Ahmed

Usman Ahmed is an individual forex trader and market analyst. He holds a Masters of Business Administration (MBA) degree. His work includes fundamental and technical reports on various currency pairs, commodity futures and stock markets. His technical analysis features price action strategies.

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