- The Aussie Dollar recently traded higher towards 0.7630 against the US Dollar where it found resistance.
- There is a monster bullish trend line with support at 0.7600 formed on the hourly chart of AUD/USD.
- In Australia, the New Motor Vehicle Sales for May 2017 was released by the Australian Bureau of Statistics.
- The result was better, as the sales increased 2.9% (MoM), more than the last revised 0.6%.
AUD/USD Technical Analysis
The Aussie Dollar started a good upside move from the 0.7575 support against the US Dollar and moved above the 0.7600 handle.
The AUD/USD pair traded as high as 0.7628 before facing resistance. There were two attempts to break the 0.7630 resistance, but buyers failed to overcome selling pressure.
As a result, the pair started correcting lower, and moved below the 23.6% Fib retracement level of the last wave from the 0.7575 low to 0.7628 high.
AUD/USD Hourly Chart
On the downside, there is a monster bullish trend line with support at 0.7600 formed on the hourly chart. It also coincides with the 38.2% Fib retracement level of the last wave from the 0.7575 low to 0.7628 high.
So, the trend line support near 0.7600-05 can be considered as a major barrier for further declines in the near term.
If 0.7600 holds, the pair may bounce back for a move towards the last swing high and resistance at 0.7628-30.
Australia’s New Motor Vehicle Sales
Today in Australia, the New Motor Vehicle Sales for May 2017 was released by the Australian Bureau of Statistics. The market was expecting the sales to increase by 1% in May 2017, compared with the previous month.
The actual result was better than the forecast, as the New Motor Vehicle Sales rose sharply by 2.9%. Even the last reading was revised up from 0.3% to 0.6%.
In terms of the yearly change, the sales increased 4.9%, which was a lot more compared to the last revised 0.4%.
The report mentioned that:
When comparing national trend estimates for May 2017 with April 2017, sales for Sports utility vehicles and Other vehicles increased by 0.7% and 1.5% respectively. There was no movement in sales for Passenger vehicles.
Overall, the AUD/USD remains supported near 0.7605-00, which can also be considered as a buy zone.