Key Highlights
· Aussie Dollar after failing miserably around the 0.7280 level traded lower against theUS dollar.
· The AUD/USD pair broke a major support trend line, which ignited a sharp downside reaction.
· Australian House Price Index released by the Australian Bureau of Statistics increased by 4.7% in the second quarter of 2015, compared with the preceding quarter.
AUD/USD Technical Analysis
The Aussie Dollar moved lower recently to trade below 0.7200 against the US Dollar. There was a bullish trend line formed on the hourly chart, which was breached to open the doors for more losses in the near term. Moreover, the AUD/USD pair also settled below the 100 hourly simple moving average to encourage sellers.
However, the pair found support near the 100 hourly SMA, which acted as a barrier for sellers. Only a break and close below the stated MA might ignite a move towards the all-important 0.7100 area. The hourly RSI is below the 50 level, which is a bearish sign in the near term.
On the other hand, if the pair attempts to correct higher, then the 100 hourly SMA may perhaps act as a hurdle for buyers.
Furthermore, the broken trend line and the 38.2% Fib retracement level of the last drop from the 0.7278 high might also come into play.
Australian House Price Index
Earlier during the Asian session, the Australian House Price Index, which shows changes in housing prices of major cities in Australia was released by the Australian Bureau of Statistics. The outcome was above the forecast, and also when compared with the last gain of 1.6%. The index rose by 4.7% in the second quarter of 2015, compared with the preceding quarter.