AUDUSD has been in a non-volatile impulsive bearish move as the week started. AUD having better economic reports today like CPI reports, which was unchanged at 0.5% (vs. 0.6% expected), but the published figure was not negative and Trimmed Mean CPI was increased as expected at 0.5% (vs. 0.4% previously). Today AUD had a good opportunity to gain strength over USD but failed drastically, while USD did not have any positive news today. Yesterday the USD New Home Sales report was published at 621k, which was better than expected 590k, and the today USD Crude Oil Inventories report was not better than expected at -3.6M (vs/ -1.1M expected). USD is expected to gain more ground against AUD in the coming days.
Now let us look at the technical view. The price has been very impulsive today after bouncing off the resistance level of 0.7550. Currently, the price has broken below the support of 0.7470 and is still showing some bearish pressure in the market. If the price closes below the support of 0.7470 with a daily close, then we will be looking forward for some more downward moves towards the 0.7160 area. On the other hand, if the price rejects the support of 0.7470, then we might see some upward movement in this pair, but the bearish bias will continue until the price takes out 0.7550 with a daily close above it.
