Aussie Dollar Plunges As Bears Gain Strength

The Australian Dollar (AUD) inched lower against the US Dollar (USD) on Monday, decreasing the price of AUDUSD to less than 0.8050 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 0.8035.  A support can be noted around 0.8000, an immediate horizontal support ahead of 0.7895, the psychological number and then 0.7800, another trendline support as demonstrated in the given below chart.

On the upside, a hurdle can be noted near 0.8124, an immediate horizontal resistance level ahead of 0.8200, 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 bullish as long as the 0.7800 support area is intact.

Australia Home Loans

Australian home lending in July beat analyst expectations while the value of lending to investors slipped. Headline loan growth rose 2.9 per cent month on month to 55,220 and up from the 1.0 per cent forecast by a Reuters survey of analysts. Lending to owner occupiers rose 0.9 per cent month on month, up from 0.5 per cent in June while loans to investors dipped 3.9 per cent, according to the Australian Bureau of Statistics. The Australian dollar was up a touch against its US counterpart at $0.8056 following the data release.

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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