Technical Bias: Bearish
- Euro traded higher against the Aussie Dollar, but facing a major barrier on the upside.
- The Australian HIA/AiG Performance of Construction Index, released by the Australian Industry Group and the Housing Industry Association posted a minor rise from 46.4 to 47.1 in July 2015.
- Australian Home Loans released by the Australian Bureau of Statistics registered an increase of 4.4% in June 2015, which was lower when compared with the forecast of +5%.
The Aussie Dollar suffered losses against the Euro yesterday, as the employment report released in Australian ignited bearish pressure. The EURAUD pair traded higher, but faced a major resistance around an important bearish trend line on the hourly chart, which stopped the upside move.
One key point to note is that the upside was stalled around the 50% Fib retracement level of the last drop from the 1.5093 high to 1.4730 low. The bearish trend line is coinciding with the 100 hourly simple moving averages, pointing towards the significance of the trend line.
Moreover, the hourly RSI is below the 50 level, and showing a lot of bearish signs. So, if the pair corrects higher, it might find resistance on the upside.
On the downside, the last swing low of 1.4730 could be tested one more time.
Australian HIA/AIG Performance of Construction Index
Today during the Asian session, the Australian HIA/AIG Performance of Construction Index, which is considered as an indicator that measures the conditions on the short and medium term in the construction market was released by the Australian Industry Group and the Housing Industry Association. The outcome was way above the market expectation, as the Australian HIA/AIG Performance of Construction Index climbed to 47.1, up from the last reading of 46.4.
The report stated that “the three-month moving average of The Australian PCI was unchanged in July, at 47.1 points“.
Selling rallies closer to the 100 hourly SMA area is a good option.