AUDUSD – Perfect Bearish Break?

Key Points

  • Aussie Dollar moved lower and traded below a major support area against the US Dollar.
  • There was a monster contracting triangle breached by sellers, opening the doors for more losses in the near term.
  • In the US, the MBA Mortgage Applications released by the Mortgage Bankers Association posted an increase of 11.8%, compared with the last decline of 27.6%.

Technical Analysis

The AUDUSD pair tumbled recently and also cleared a major support area in the form of a contracting triangle. The pair also settled below the 100, 200 and 50 hourly simple moving average, which can be seen as a bearish sign.

AUDUSD

The AUDUSD pair traded as low as 0.7209, and it looks like it might correct a few pips from the mentioned levels.

However, any major correction from the current levels can be seen as a selling opportunity. All three key SMA’s along with the broken triangle may act as a resistance moving ahead.

US MBA Mortgage Applications

Today in the US, the MBA Mortgage Applications, which presents various mortgage applications and is also considered as a leading indicator of the U.S Housing Market was released by the Mortgage Bankers Association.

The outcome was a lot higher when compared with the last decline of 27.6%, as the MBA Mortgage Applications increased by 11.8%.

Commenting on the report, the MBA’s Chief Economist and Senior Vice President for Research and Industry Technology, Michael Fratantoni, stated “We are projecting that home purchase originations will increase in 2016 as the US housing market continues on its path towards more typical levels of turnover based on steadily rising demand and improvements in the supply of homes for sale and under construction”.

Overall, the US Dollar saw some bids during the NY session, and it would be interesting to see if it continues moving ahead or not.

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