AUD/USD technical analysis: 50-day EMA questions recent pullback, upbeat Aussie data

Housing and consumer inflation data help Australian Dollar (AUD) buyers to extend the previous pullback.
A sustained break of 50-day EMA can propel the Aussie pair towards 38.2% Fibonacci retracement and current month high.

Anil Panchal FXStreet

Despite bouncing off 0.6910 and witnessing positive Australian economics, the AUD/USD pair still trades below the 50-day exponential moving average (EMA) as it takes the bids near 0.6960 during early Thursday morning in Asia.

While 3.2% reading of the Consumer Inflation Expectations (July) versus 3.3% prior can be considered as a negative point, 0.0% Home Loans for May month against -0.6% forecast and -1.7% reading of the Investment Lending for Home (May) compared to -2.2% earlier favors the AUD strength.

Though, a daily closing beyond 50-day EMA level of 0.6974 becomes necessary for the pair to aim for 38.2% Fibonacci retracement of January to June downpour, at 0.7010, followed by the current month high near 0.7050.

In a case where prices rally beyond 0.7050, 23-week long descending trend-line at 0.7105 becomes the key for buyers to watch.

On the flip side, a sustained break of recent lows surrounding 0.6910 highlights the importance of late-May lows close to 0.6860.

Additionally, pair’s declines beneath 0.6860 might not refrain from challenging June lows adjacent to 0.6830.

AUD/USD daily chart

Trend: Pullback expected

1. R3 0.7058
2. R2 0.7018
3. R1 0.699
PP 0.695
1. S1 0.6921
2. S2 0.6881
3. S3 0.6852

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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