AUDUSD Still Looks Vulnerable amid Consumer Confidence Data

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 ongoing upside move.

AUD/USD Technical Analysis

As of this writing, the pair is being traded around 0.7787. A support can be noted around 0.7700, an immediate horizontal support ahead of 0.7750 the psychological number and then 0.7667, another key horizontal support as demonstrated in the given below chart.

On the upside, a hurdle can be noted near 0.8024, 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 below chart. The technical bias shall remain bullish as long as the 0.7667 support area is intact.

Aussie Consumer Confidence

Australian consumers were feeling peppier in October, with optimists outnumbering pessimists for the first time since last November, according to a monthly survey by Westpac.

The Westpac-Melbourne Institute Index of Consumer Sentiment rose 3.6 per cent to 101.4 in October from 97.9 in September.

A survey by National Australia Bank Tuesday showed business confidence at it highest levels in a decade.

Still, there are concerns about the Australian economy, which grew by less than 2.0 per cent in the last year.

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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