Key Points
- The Aussie Dollar made a downside move, but found support at 0.7887 against the US Dollar.
- There is a major bearish trend line forming with resistance near 0.7905 on the hourly chart of the AUDUSD pair.
- Recently in the US, the Existing Home Sales for July 2017 was released by the National Association of Realtors.
- The outcome was below the forecast of +0.9%, as there was a decline in sales by 1.3% (MoM).
AUDUSD Technical Analysis
The Aussie Dollar started a downside move from the 0.7950 high and declined below 0.7900 against the US Dollar. The AUDUSD pair traded as low as 0.7867 and later started recovering towards 0.7900 and the 21 hourly simple moving average.
The pair is already above the 23.6% Fib retracement level of the last decline from the 0.7951 high to 0.7867 low.
The pair is currently above the 21 hourly SMA, but faces resistance near 0.7905-10. There is a major bearish trend line forming with resistance near 0.7905 on the hourly chart. A break above it could open the doors for more gains towards 0.7950.
US Existing Home Sales
Recently in the US, the Existing Home Sales for July 2017 was released by the National Association of Realtors. The market was positioned for an increase of 0.9% in sales compared with the previous month.
The actual result was below the forecast of +0.9%, as there was a decline in sales by 1.3%. The last reading was also revised from -1.8% to -2%. The report stated that:
The median existing-home price2 for all housing types in July was $258,300, up 6.2 percent from July 2016 ($243,200). July’s price increase marks the 65th straight month of year-over-year gains.
Overall, there is a chance that the AUDUSD pair could break 0.7910 for further gains in the near term.
