AUDUSD Analysis – Aussie Dollar May Continue To Tumble Vs US Dollar

  • The Aussie Dollar declined heavily recently and moved below the 0.7450 support against the US Dollar.
  • At the moment, there is an expanding triangle pattern formed with support at 0.7365 on the hourly chart of AUDUSD.
  • In Australia, the HIA/AiG Performance of Construction Index for April 2017 released by the Australian Industry Group and the Housing Industry Association posted a rise from 51.2 to 51.9.

AUDUSD Technical Analysis

The Aussie Dollar was under a lot of pressure recently, and moved below the 0.7480 and 0.7440 support levels against the US Dollar. The AUDUSD pair traded as low as 0.7366 where it found support.

The pair is currently correcting higher, and trading near the 23.6% Fib retracement level of the last decline from the 0.7414 high to 0.7366 low.

However, it won’t be easy for buyers to take the pair further higher, especially above 0.7400.

AUDUSD Hourly Chart

AUDUSD Technical Analysis

There is an expanding triangle pattern formed with support at 0.7365 on the hourly chart of AUDUSD, which may act as a catalyst for the next move.

The most important resistance is around the 61.8% Fib retracement level of the last decline from the 0.7414 high to 0.7366 low at 0.7396.

Above. 0.7396, the triangle resistance and 0.7400 might act as a major hurdle for further upsides. On the downside, a break of 0.7365 might take AUDUSD towards 0.7340 in the short term.

HIA/AiG Performance of Construction Index

Today in Australia, the HIA/AiG Performance of Construction Index for April 2017 was released by the Australian Industry Group and the Housing Industry Association. The market was expecting no major increase from the last reading of 51.2 in April 2017.

The actual result was better than the forecast, as the HIA/AiG Performance of Construction Index posted a rise from 51.2 to 51.9.

The report also mentioned a positive growth, and stated that “This signaled industry-wide growth for a third consecutive month and at a slightly faster pace than in March. Australian PCI® data for April revealed a welcome improvement in the new orders sub-index which returned to growth (i.e. above 50 points) after falling to a five-month low in March“.

Overall, the AUDUSD pair may correct a few pips towards 0.7400, but the overall trend remains bearish in the near term.

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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