This morning, the Australian Dollar (AUD) is falling terribly against the US Dollar (USD), it responds totally contrary to the pair’s move yesterday, the price fell after a major piece of an economic news report. With regard to the technical bias, due to the lower high printed on the graph during the last downside move, it may remain bullish.
AUD/USD: Technical Analysis
At times, the AUDUSD is being exchanged for a price near 0.6865 with a multiple support levels, at first the price may come across a support level of around 0.6795, the 23.6% Fib level ahead of 0.6769, the trend line support and then 0.6670, the low of October 02, 2019, as shown in the graph below. All of them prevent the price from further falling.
Talking about the upside, There are few levels of resistance to come forward. The price may face first resistance around 0.6873, trendline resistance that can make it hard for the price to pass through it. Another level of resistance can hit the price close to 0.6999, generally known as the Fibonacci level ahead of 0.7202, the strongest horizontal resistance, as shown in the above graph.
AUD Westpac Consumer Confidence
From the fundamental point of view, the news clearly imposed on AUD is the Westpac Consumer Confidence released by the Melbourne Institute Faculty of Economics and Commerce, which dropped sharply from 4.5% to -1.9%.
This measures the degree of feeling of individuals in economic activity which represents respondents ‘ perceptions of their family finances over the past year and the coming year, their aspirations of one-year and five-year economic conditions and their views on current buying conditions for large household items. A weak reading is generally regarded as negative (or bearish) to the AUD.
Trading AUDUSD around current levels can be risky since the technical bias seems to remain bearish.