The Australian Dollar (AUD) slips down on Wednesday after lapping heights for the past two days. The price decreases below 0.6900, after a major economic news release. The technical bias might also remain bearish since the lower low is printed by the price during the recent downside move.
AUD/USD: Technical Analysis
As of writing this piece, the pair is being quoted around 0.6830. A few resistance levels may be seen on the upper side which may stop the price from increasing further with the first one being the key horizontal resistance stands near 0.6876, ahead of 0.6923, the Fibonacci level and then comes 0.7082, the high of July 19, 2019, which might keep the price below the said level as shown in the graph below.
Coming towards the downside, the support levels may also help the price to sustain and prevent it from decreasing below the current levels. Should the price starts dropping it may meet the key horizontal support around 0.6767. The price may then be subjected to another support level near 0.6729, the trendline support and then 0.6670, the low of October 02, 2019 may help the price to stay above the said level as shown in the graph above.
AUD Building Permit
From a fundamental point of view, the building permits issued by the Australian Bureau of Statistics show that the number of permits for new construction projects falls sharply from 7.5% to-8.1%, which tends to cause AUD instability. The lower the number of licenses, the more the AUD will be negative.
Trading AUDUSD may not be a better approach for a short-term place. However, it can get support around 0.6767, and start recovering again. If this occurs, trading a pair for a long-term position will give positive results.