Aussie Dollar US Dollar

AUD/USD Analysis – Aussie Dollar Following Declining Channel Vs US Dollar

  • The Aussie Dollar after trading as high as 0.8041 against the US Dollar found sellers and moved down.
  • There is a crucial declining channel with resistance at 0.7950 forming on the hourly chart of AUD/USD.
  • Today, the HIA/AiG Performance of Construction Index for July 2017 was released by the Australian Industry Group and the Housing Industry Association.
  • The result was on the higher side, as there was a rise from the last reading of 56.0 to 60.5.

AUD/USD Technical Analysis

The Aussie Dollar traded higher this past week and even moved above the 0.8000 handle against the US Dollar. The AUD/USD pair traded as high as 0.8041 before it faced sellers and started a downside move.

The downside move was slow and steady as the pair moved below 0.8000 and 0.7980 support levels.

It is currently following a crucial declining channel with resistance at 0.7950 on the hourly chart, which is acting as a downside move catalyst.

AUD/USD Hourly Chart

AUD/USD Technical Analysis

The pair recently traded as low as 0.7890 and started correcting higher. It has already moved above the 50% Fib retracement level of the last decline from the 0.7978 high to 0.7890 low.

However, the pair is facing a crucial challenge on the upside near 0.7950-60. The channel resistance, the previous support and the 76.4% Fib retracement level of the last decline from the 0.7978 high to 0.7890 low are likely to act as a major hurdle for buyers.

HIA/AiG Performance of Construction Index

Today, the HIA/AiG Performance of Construction Index for July 2017 was released by the Australian Industry Group and the Housing Industry Association. The market was looking for an increase in the index from the last reading of 56.0 to 58.0.

The actual result was on the higher side, as there was a rise from the last reading of 56.0 to 60.5. The current reading is an indication of a strong recovery and points the strongest pace of overall industry growth since the start in September 2005, as per the report.

The report added that:

The further upturn in industry conditions reflected expanding activity across all four major construction sectors. Commercial construction and house building were the major drivers of growth in July.

Overall, the AUD/USD pair may continue to head higher, but it won’t be easy for the pair to break the 0.7950-60 levels.

About Aayush Jindal 109 Articles
With over 10 years of experience and still counting, Aayush posses great technical and fundamental analysis skills in the Forex, Cryptocurrency and Financial Markets. His Analysis are well-know and famous for engaging with viewers easily. He is from IT background with a lot of passion in the Forex and Cryptocurrency Arena.


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