Technical Bias: Neutral
Key Takeaways
• Australian dollar pushing higher against the US dollar, but faces a major hurdle around the 0.9325-30 levels.
• A break and close above the 0.9335 level might call for more gains in the AUDUSD pair.
• AUDUSD support seen at 0.9335 and resistance ahead at 0.9300.
The US dollar traded higher against most of its counterparts yesterday, but the Australian dollar was an exception as the AUDUSD pair held the ground Intraday.
Australian Construction Work Done
Earlier during the Asian session, the Australia’s Construction Work Done data was published by the Australian Bureau of Statistics. The forecast was of a 0.3% decline in the June quarter. However, the outcome was disappointing, as the seasonally adjusted estimate for total construction work done fell 1.2% to $51,926.0M. However, the AUDUSD pair buyers were unfazed by the outcome, as the pair consolidated in a range during the Asian session.
Technical Analysis
There is a major confluence of trend lines around the 0.9320-30 levels on the 4 hour chart of the AUDUSD pair. Moreover, the 38.2% Fibonacci retracement level of the last drop from the 0.9476 high to 0.9235 low is also around the mentioned confluence area. Currently, the pair is trading around the same resistance confluence area. It means that the pair is at risk of a breakout in the short term. If the pair successfully closes above the 200 simple moving average (SMA) – 4H, then there is a chance of a move towards the 61.8% fib level.
On the other hand, if the AUDUSD buyers fail to take the pair higher, then it might move lower back towards the 100 SMA (4H) which is currently around the 0.9300 level. Any further losses might take the pair towards the 0.9250 swing support level.
Moving ahead, trading with a break above the confluence area looks like a good option in the short term.
