AUDUSD – Aussie Dollar Formed Bottom Near 0.7160 Vs Dollar?
Aayush Jindal
Key Highlights
The Aussie dollar after getting rejected many times near 0.7160 against the US Dollar, traded higher.
The AUDUSD pair traded higher, and broke a bearish trend line at 0.7230 on the 4-hours chart.
It looks like the pair has formed a bottom near 0.7160, and may continue to move higher.
Today in Australia, the AiG Performance of Services Index released by the Australian Industry Group posted a rise from 51.1 to 57.7 in Nov 2016.
AUDUSD Technical Analysis
The Aussie dollar after trading lower against the US Dollar found support near 0.7150-60. The AUDUSD pair later started a recovery, broke a resistance at 0.7230, and now looks set for more gains.As mentioned, there were many rejections near 0.7150-60, which later helped the pair in gaining bullish momentum. The pair surged higher, and broke a bearish trend line at 0.7230 on the 4-hours chart. Moreover, there was also a close above the 23.6% Fib retracement level of the last drop from the 0.7524 high to 0.7159 low.The pair at the moment, trying to settle above the 100 simple moving average (4-hours chart), which acted as a resistance near 0.7260-80. A close above it may call for a move towards the 50% Fib retracement level of the last drop from the 0.7524 high to 0.7159 low at 0.7299.
AiG Performance of Services Index
Today in Australia, the AiG Performance of Services Index, which presents business conditions in the Australian service sector was released by the Australian Industry Group. The market was aligned for a minor increase in the index from the last reading of 51.1 in Nov 2016.The result was positive, as there was a sharp rise from 51.1 to 57.7 in Nov 2016. The report added that “All five activity sub-indexes in the Australian PSI® were above 50 points and indicate expansion in December. Sales jumped 14 points in December, up to 62.1 points from 48.1 in November. New orders rose by 6.4 points to 60.4 points. Stocks lifted 5.7 points to 52.6 points, growing in ten out of the past eleven months.“Overall, the result was above the forecast, and helped the Aussie dollar in gaining traction. There are chances of AUDUSD moving higher towards 0.7320 in the short term.
As mentioned, there were many rejections near 0.7150-60, which later helped the pair in gaining bullish momentum. The pair surged higher, and broke a bearish trend line at 0.7230 on the 4-hours chart. Moreover, there was also a close above the 23.6% Fib retracement level of the last drop from the 0.7524 high to 0.7159 low.The pair at the moment, trying to settle above the 100 simple moving average (4-hours chart), which acted as a resistance near 0.7260-80. A close above it may call for a move towards the 50% Fib retracement level of the last drop from the 0.7524 high to 0.7159 low at 0.7299.
The result was positive, as there was a sharp rise from 51.1 to 57.7 in Nov 2016. The report added that “All five activity sub-indexes in the Australian PSI® were above 50 points and indicate expansion in December. Sales jumped 14 points in December, up to 62.1 points from 48.1 in November. New orders rose by 6.4 points to 60.4 points. Stocks lifted 5.7 points to 52.6 points, growing in ten out of the past eleven months.“Overall, the result was above the forecast, and helped the Aussie dollar in gaining traction. There are chances of AUDUSD moving higher towards 0.7320 in the short term.