sAUD/USD faces challenges as it clings to support near 0.6400, remaining trapped within a familiar range. The Federal Reserve's hawkish stance and worries about a potential property crisis in China weigh heavily on the pair's prospects. Despite support at 0.6400, resistance at 0.6420-0.6430 limits any upward moves. AUD/USD grapples with a tough environment, as the USD's strength and China's property concerns cap its gains and keep it range-bound. Traders await developments that could break the pair free from this constricted zone as on Tuesday "a new home sales" and "building permits" economic news will be released which could tell more about the strength US economy in the property sector. A mixed outcome of these news may potentially turn this pair bullish for the Australian Dollar (AUD). If it beats the expectation, it may make this pair to be more bearish and continues making lower low.
AUDUSD Technical Analysis
The AUD/USD hourly timeframe chart reflects a bearish sentiment, with the EMA 50 positioned below the EMA 200. Additionally, both the MACD and MACD signal line are situated below the 0 level. However, it's worth noting that the RSI ventured into the overbought region on September 22, 2023, signaling a potential uptick in demand for AUD/USD. This coincides with a recent rebound observed around the 0.6383-0.6400 support zone, marked by a red rectangle.
Caution is warranted as a notable resistance level looms around 0.6420-0.6450, indicated by a blue rectangle, and at the EMA 200. Traders sh
ould closely monitor these levels for potential market developments.
Key Support Zone: 0.6383-0.6400
Key Resistance Zone: EMA 50 - EMA 200
Key Economic Calendar to Watch Today
US Building Permits
Forecast 1.543M vs Previous 1.443M
CB Consumer Confidence (Sep)
Forecast 105.5 vs Previous 106.1
New Home Sales (Aug)
Forecast 700K vs Previous 714K
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.