Key Points
- The Aussie Dollar started a downside move after trading near 0.7645 against the US Dollar.
- There was a break below a major bullish trend line with support at 0.7610 on the hourly chart of AUDUSD.
- Recently in the US, the Dallas Fed Manufacturing Index for Nov 2017 was released.
- The outcome was below the market forecast as there was a decline in the index from 27.8 to 19.4.
AUDUSD Technical Analysis
The Aussie Dollar was in a decent uptrend and it recently traded as high as 0.7645 against the US Dollar. The AUDUSD pair started a downside move after testing 0.7645 and moved below the 0.7620 support and the 21 hourly simple moving average.
The pair broke the 23.6% Fib retracement level of the last wave from the 0.7522 low to 0.7645 high. Moreover, there was a break below a major bullish trend line with support at 0.7610 on the hourly chart, opening the doors for more declines.
The pair might continue to trade lower and the next support on the downside is near the 61.8% Fib retracement level of the last wave from the 0.7522 low to 0.7645 high at 0.7575.
Dallas Fed Manufacturing Index
Recently in the US, the Dallas Fed Manufacturing Index for Nov 2017 was released. The market was looking for the index to decline from the last reading of 27.6 to 24.0.
The actual result was below the market forecast as there was a decline in the index from 27.8 to 19.4. The report added that:
Texas factory activity continued to expand in November, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, fell 10 points from its October reading but remained elevated at 15.1.
Overall, the AUDUSD pair remains at a risk of a downside break below the 0.7600 support area in the near term.
