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Market Analysis

Home » Technical Analysis » Daily » AUD » AUDUSD – 0.7160 Remains a Significant Resistance

AUDUSD – 0.7160 Remains a Significant Resistance

Posted by FXTimes in AUD - December 18th, 2015 11:01 am GMT

Aussie Dollar Yen AUDJPY

Key Points

  • Aussie Dollar fell sharply, but buyers managed to protect the downside at 0.7100 against the US Dollar.
  • However, there is a major resistance formed near 0.7160 that may stall gains in the near term.
  • Chinese hosing price index, released by the National Bureau of Statistics posted an increase of 0.9% in November 2015, more than the last rise of 0.1%.
  • Chinese MNI China Business Sentiment Indicator increased from the last reading of 49.9 to 52.7 in November 2015.

Technical Analysis

The AUDUSD pair recently fell close to the 0.7100 support area where buyers managed to prevent the downside. The pair is currently correcting higher, but facing a major resistance near 0.7160. The stated level acted as a support earlier and may act as a hurdle moving ahead.

AUDUSD

Moreover, the 50 hourly simple moving average along with the 38.2% Fib retracement level of the last drop from the 0.7282 high to 0.7098 is sitting near it.

Selling around 0.7160-80 can be an option as long as the pair below the bearish trend line.

Chinese House Price Index

Today, there were a couple of low risk events lined up in China that helped the Aussie Dollar to gain some ground. The hosing price index, which is a key indicator for economy, as rising prices usually encourages new construction was released by the National Bureau of Statistics. The outcome was positive, as there was an increase of 0.9% in the price index.

Moreover, the MNI China Business Sentiment Indicator that is based on a monthly poll of Chinese business executives, tracks and predicts was also reported. It posted an increase from the last reading of 49.9 to 52.7 in November 2015.

Overall, the data was positive enough to ignite a minor rally in the AUDUSD pair. However, the 0.7160 is a major barrier for buyers to break in the near term.

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