AUDUSD Bullish Bias Vulnerable; Support Estimated Near 0.9390

Technical Bias: Neutral

Key Takeaways

• Australian dollar continues to consolidate against the US dollar.

• There is a major support at 0.9390 for the AUDUSD pair, which might act as a pivot zone for the pair.

• AUDUSD support seen at 0.9390 and resistance ahead at 0.9440.

The US dollar is trading around important support levels against the Australian dollar, as the market sentiment started to tilt in favor of buyers.

Technical Analysis

There is a critical bullish trend line formed on the 4 hour timeframe for the AUDUSD pair. The mentioned trend line holds a lot of importance, as the 200, 100 and 50 simple moving average (SMA) -4H also sits around the trend line support area. Moreover, the 61.8% Fibonacci retracement level of the last move higher from the 0.9331 low to 0.9476 high is around the same area. So, the 0.9390 level might act as a swing zone for the AUDUSD pair. There is a possibility that the pair might gain bids around the current or a bit lower levels, and if that happens, then initial resistance can be seen around the 0.9440 Alternatively, if the pair breaks the 0.9390 support level, then it would open the doors for a test of the last low of 0.9331. Overall, the pair might continue to consolidate, and look for a news release for a break either lower or higher. 

HIA New Home Sales

Earlier during the Asian session, the Housing Industry Association (HIA) New Home Sales was released by the Housing Industry Association Economics Group. The report published mentions that Australia’s HIA New Home Sales jumped from previous -4.3% to 1.2% in June 2014. However, it failed to cause any substantial moves in the AUDUSD pair.