Trading AUD/USD ahead of US consumer sentiment news
|The Australian Dollar (AUD) slid down against the U.S. Dollar (USD) on Thursday (July 15, 2021), decreasing the price of the AUDUSD pair to less than 0.7500, ahead of the release of the U.S. Michigan Consumer Sentiment Index news.
Technical analysis
As of this writing, the AUDUSD pair floats around 0.7459. If the price continues to drop, the pair might find some support near the listed price levels.
Short-term support
0.7417 – The lower trendline arm.
0.7378 – The Fibonacci retracement (61.8%).
0.7339 – The high of November 09, 2020.
Daily Chart Source- MetaTrader4
On the upside, the price of the pair might face some resistance near the listed price levels.
Short-term resistance
0.7497 – The major horizontal resistance.
0.7550 – The 23.6% Fib level resistance.
0.7581 – The upper trendline arm.
US Michigan consumer sentiment index news
The University of Michigan, U.S. is scheduled to release numbers for the Consumer Sentiment Index Tomorrow (July 16, 2021). As per the average forecast of economists, the Michigan Consumer Sentiment Index news registered a reading of 86.5 in July, as compared to the reading of 85.5, in the month before.
Stats for the consumer sentiment index reflects consumers’ confidence in the economic activity of the state. Since the Consumer Sentiment Index helps economists to project consumer spending patterns in the coming days, it is one of the crucial indicators of the U.S. economy. Generally speaking, a high reading for the Consumer Sentiment Index strengthens the U.S. Dollar (USD) and suggests a bearish trend for the AUDUSD pair and vice versa.
Conclusion
Considering the price movements of the pair over the past few days, it may be a better option in the short term if the AUDUSD pair was sold at around 0.7497. Due to the volatile nature of the market, however, prices may change and lead to different outcomes.
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