Aussie Dollar Gains Bullish Momentum amid US Industrial Output News

The Australian Dollar (AUD) inched higher against the US Dollar (USD) on Monday, increasing the price of AUDUSD to more than 0.7650 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 0.7659. 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 Industrial Output

U.S. industrial production rose less than expected in November as a drop in utilities output offset a post-hurricane rebound in the oil and gas industries and the third consecutive monthly advance for manufacturing, the Federal Reserve said on Friday.

Overall industrial output rose 0.2 percent following an upwardly revised 1.2 percent gain in October.

Economists polled by Reuters had forecast industrial output rising 0.3 percent last month. The U.S. central bank’s measure of the industrial sector is comprised of manufacturing, mining, and electric and gas utilities.

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.

fxopenbroker@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.

More Posts

By with No Comments 1 499