The Australian Dollar (AUD) inched lower against the US Dollar (USD) on Wednesday, decreasing the price of AUDUSD to less than 0.7900 following some key economic releases. The technical bias shall remain bearish because of a lower low in the ongoing downside move.
AUD/USD Technical Analysis
As of this writing, the pair is being traded around 0.7886. A support can be noted around 0.7500, an immediate horizontal support ahead of 0.7450 the psychological number and then 0.7367, 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 above chart. The technical bias shall remain bearish as long as the 0.8024 resistance area is intact.
US Housing Prices
Home prices continued to climb in the U.S. The S&P CoreLogic Case-Shiller National Home Price Index rose 6.2% in September, up from 5.9% a month earlier — the fastest annual rate increase since June 2014. The index was up 0.4% in September from a month earlier, beating analysts’ estimate of 0.3%. Prices were lifted by low inventory of homes, at a 3.8-month supply, as well as a growing unemployment rate of 4.1% and the average rate on a 30-year mortgage of under 4%. Home prices increased in all the cities tracked in the 20-city index, which posted a 6.2% year-over-year gain, up from 5.8% the previous month.
Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.