The Australian Dollar (AUD) took the step forward with the price of more than 0.6500 against the US Dollar (USD) after yesterday’s very dreadful fall. This increase is very hopeful because since the beginning of the year the AUDUSD has been suffering from the bad phase, so a little increase can be considered as good for the price of the pair. The last commonwealth bank is deemed the reason for this increase. As far as the technical bias is considered, it might remain bearish for a while, due to a lower low wave in the last downside move of the graph.
AUD/USD: Technical Analysis
The AUDUSD today has been quoted at the price of 0.6569. It’s a little worry for the pair’s price that it has the resistance levels on its upper side, which not help the price in continuing the forward momentum, at 0.6656, the price has the confluence of the 23.6% Fib level and the trendline, ahead of another trendline resistance at 0.6728, and then the major horizontal resistance disturbs the forward movement of price at 0.6758.
At the price below, there are the few support levels that might be considered as the hope to lift up the price, at 0.6560, there is the trendline support, ahead of the psychological level at 0.6500, and then the main horizontal support assisted it at 0.6489.
Commonwealth Bank of Australia
The Index of Manufacturing Purchasing Managers (PMI) published both by the Commonwealth Bank of Australia and the Markit Economics measures business conditions in the manufacturing sector. It rose from 49.6 to 49.8 on February 21, 2020, though its small rise in it but the Manufacturing PMI is an important indicator of Australia’s business conditions and overall economic conditions. For the AUD, a result above 50 signals is bullish while a result below 50 is considered bearish.
Although the graph above depicts the poor picture of the AUDUSD, we can’t ignore that pair is now improving itself from the past days, so it might be effective for both the long and short term traders.