- – The Aussie dollar made a downside move below 0.7500 against the US Dollar.
- – The AUD/USD pair is currently following a major bearish trend line with resistance at 0.7520 on the hourly chart.
- – Earlier today, the Australian Home Loans figure for Feb 2017 released by the Australian Bureau of Statistics posted a decline of 0.5%.
Australian Home Loans
Today in Australia, the Home Loans figure for Feb 2017 released by the Australian Bureau of Statistics. The market was positioned for the number of home loans in Feb 2017 to increase by roughly 0.2%, compared with the last +0.5%.
However, the outcome was below the forecast, as the Home Loans declined by 0.5% in Feb 2017. The last reading was also revised down from +0.5% to +0.4%. Overall, the result was negative, and increased bearish pressure on AUD/USD. The report stated that the “trend estimate for the total value of dwelling finance commitments excluding alterations and additions rose 0.4%. Investment housing commitments rose 0.7% and owner occupied housing commitments rose 0.2%”.
In short, the AUD/USD has no reason to recover, and it may extend its decline below the 0.7480 level.
AUD/USD Technical Analysis
The Aussie dollar remained in a heavy downtrend with a move below 0.7520 against the US Dollar. There is a monster trend line resistance formed at 0.7520 on the hourly chart, which is acting as a downtrend catalyst. As long as the AUD/USD pair is below 0.7520-0.7540, it may continue to decline in the near term.
On the upside, an initial resistance is around the 23.6% Fib retracement level of the last decline from the 0.7562 high to 0.7477 low. However, the most important one is near the trend line resistance above 0.7500. The same area also coincides with the 50% Fib retracement level of the last decline from the 0.7562 high to 0.7477 low.
On the downside, an initial support is around the recent low of 0.7480. A break below it could spark more losses towards the 0.7450 level, followed by a test of the 0.7420 level if the Aussie dollar sellers remain in control.Tags: AUD/USD Technical Analysis, Aussie dollar, Australian Home Loans, US Dollar