AUDUSD – Aussie Dollar Recovery Won’t Be Easy Vs US Dollar
Aayush Jindal
Key Highlights
The Aussie Dollar after failing once again near 0.7740-50 against the US Dollar, dropped sharply.
The AUDUSD pair broke a bullish trend line with support at 0.7650 on the 4-hours chart.
The Australian HIA New Home Sales for Feb 2017 (MoM) released by the Housing Industry Association posted a rise of 0.2%.
Today, the US Gross Domestic Product for Q4 2016 will be released by the US Bureau of Economic Analysis, which is forecasted to increase by 2%.
AUDUSD Technical Analysis
The Aussie dollar was seen struggling after its failure to close above the 0.7750 resistance against the US Dollar. The AUDUSD pair moved down, now faces resistance near 0.7700.During the downside move, the pair broke a bullish trend line with support at 0.7650 on the 4-hours chart. Later, there was a close below the 100 simple moving average as well, but soon the pair recovered.It is now trading above the 100 SMA at 0.7620, and climbed above the 38.2% Fib retracement level of the last decline from the 0.7749 high to 0.7587 low.So, there is a chance of it moving towards 0.7680 or 0.7700. However, it is likely to face sellers near the stated levels. On the downside, the most important support is near the 100 SMA at 0.7620. Overall, the pair could recover a few pips, but may continue to struggle.
Australian HIA New Home Sales
Today in Australia, the HIA New Home Sales for Feb 2017 (MoM) was released by the Housing Industry Association. The market was positioned for a minor of around 1% in Feb 2017, compared with the previous month.However, the result was positive, as there was an increase of 0.2% in the HIA New Home Sales in Feb 2017.
US Gross Domestic Product (GDP)
Today in the US, the Gross Domestic Product for Q4 2016 will be released by the US Bureau of Economic Analysis. The market is aligned for the US GDP to grow by 2% in Q4 2016, which is more than the last 1.9%. If the result is positive, the US Dollar might gain bids against most of its peers.
Other Economic Releases to Watch Today
German Consumer Price Index for March 2017 (Preliminary) (YoY) – Forecast +2%, versus +2.2% previous.
Euro Zone Consumer Confidence for March 2017 - Forecast -6, versus -5 previous.
US Initial Jobless Claims - Forecast 248K, versus 258K previous.
During the downside move, the pair broke a bullish trend line with support at 0.7650 on the 4-hours chart. Later, there was a close below the 100 simple moving average as well, but soon the pair recovered.It is now trading above the 100 SMA at 0.7620, and climbed above the 38.2% Fib retracement level of the last decline from the 0.7749 high to 0.7587 low.So, there is a chance of it moving towards 0.7680 or 0.7700. However, it is likely to face sellers near the stated levels. On the downside, the most important support is near the 100 SMA at 0.7620. Overall, the pair could recover a few pips, but may continue to struggle.