AUD/USD has been quite bearish recently after breaking below the channel support. The pair is currently residing at the edge of support level 0.7830. Last week, AUD has been quite strong amid the economic reports and events which helped the currency to gain good momentum against USD and led to a further bullish move which was rejected off the resistance area of 0.8020-60 and countered with impulsive bearish pressure. This week, no economic reports were released in Australia, but on Thursday RBA Assistant Governor Debelle is going to speak about further economic policies. On Friday, Private Sector Credit report is going to be published which is expected to be unchanged at 0.5%. On the USD side, today Core Durable Goods Orders report showed a decrease to 0.2% as expected which previously was at 0.6%, Durable Goods Orders showed a significant increase with better than expected value at 1.7% from the previous negative value of -6.8% which was expected to be at 1.0%, Pending Home Sales report showed a greater deficit at -2.6% from the previous value of -0.8% which was expected to show less deficit at -0.5%, and Crude Oil Inventories report showed a negative value with a decrease to -1.8M from the previous figure of 4.6M which was expected to be at 2.9M. To sum up, USD has found support from the economic reports which resulted in bearish pressure in this pair which is expected to continue further if the upcoming US data is published with better than expected figures.
Now let us look at the technical chart. The price is currently residing at the edge of support level 0.7830. As the price remains above the support area of 0.7750-0.7830, the bullish move towards 0.8020-60 resistance area is quite probable. On the other hand, if the price breaks below the lowest support of the support area i.e. 0.7750 with a daily close, then a further bearish move towards 0.7630 will be expected.
