The Aussie dollar started an uptrend after trading as low as 0.7165 against the US dollar. Let’s see if AUDUSD can hold it or not.
AUDUSD Weekly Analysis – Can Aussie Dollar Hold Uptrend?
· The AUDUSD pair recently traded above the 0.7300 area against the US Dollar, but faced sellers near 0.7356.
· There is a bullish trend line formed, acting as a support near 0.7300 on the 4-hours chart of AUDUSD.
· Today, the HIA/AiG Performance of Construction Index posted a rise from 46.6 to 47.0 (released by the Australian Industry Group and the Housing Industry Association).
AUDUSD Technical Analysis
The Aussie dollar this past week dived and traded close to the 0.7160 support area against the US Dollar. Later, the AUDUSD pair started recovering, and moved above the 0.7240 and 0.7300 levels, and traded as high as 0.7356.
The pair is currently correcting lower, and moved below the 23.6% Fib retracement level of the last wave from the 0.7165 low to 0.7356 high. Most importantly, the pair is currently trading near a bullish trend line formed, acting as a support near 0.7300 on the 4-hours chart.
Moreover, the 38.2% Fib retracement level of the last wave from the 0.7165 low to 0.7356 high is acting as a support along with the trend line. So, there is a chance of a bounce back towards 0.7350 if the trend line support holds.
Trade Idea – If you are looking to enter a buy trade, then consider it near the 0.7300 support with a stop of a close below the trend line support.
Today in Australia, the HIA/AiG Performance of Construction Index posted a rise from 46.6 to 47.0 (released by the Australian Industry Group and the Housing Industry Association).
The market was not expecting any major increase in the index this time, but it rose by around 0.4 points. The report added that this “was an increase of 0.4 points from November, indicating a marginal easing in the industry’s rate of contraction during the final month of 2016“.
Overall, there is a chance that the AUDUSD pair may trade back towards 0.7350 pivot area if the highlighted trend line support remains intact.