AUD/USD Approaches Key Resistance Amid Forecast of Declining US Building Permits

AUD/USD – Technical Analysis for Forex Trading & CFDs.

United States – Building Permits

On Tuesday, at GMT 1:30 p.m., the US Census Bureau will release the Building Permits figure, which is an annualized number of new building permits for the residential housing sector issued during the last month.

Since getting a building permit usually indicate future construction work, Forex investors consider this data to be a leading indicator of the overall economic activity in the country.

Last month, 1.32 million building permits were issued and this month, analysts are expecting the figure to come out around 1.27 million.

Australia – CB Leading Index

On Tuesday, at GMT 3:30 p.m., the Conference Board Inc will release the month-over-month leading index for Australia, which measures the changes in the level of a composite index based seven other major fundamental indicators.

Since the CB leading index aggregates some of the other indicator data, Forex traders consider this to be an important representation of the overall Australian economy. However, since most of these data are previously released, the CB leading index tends to have a minimized immediate market impact.

Last month, the CB leading index increased by 0.2% and if the positive trend continues this month, it would likely have a bullish influence on the Australian Dollar against other major currencies.

AUD/USD Forecast

After breaking below the uptrend line on November 3, the AUD/USD mostly traded sideways, but last week, it formed a bearish pin bar on December 5 and broke below the support level around 0.7535. However, the 0.7500 level kept the AUD/USD from going further South. Consequently, the AUD/USD turned bullish and broke above the downtrend line on December 13 and it is currently trading just below the resistance around the 0.7695 level.

As the Australian CB leading index went up 0.2% last month and it appears to remain positive this month, but the US building permits figure is expected to come lower this month compared to last month, we believe it would set a bullish fundamental outlook for the AUD/USD this week. Therefore, if the AUD/USD closes above the resistance near 0.7695, it would likely attract additional bullish momentum in the market.

Hence, Australian Forex traders should look out for trading opportunities above this major resistance level around 0.7695.

BTC/AUD Forecast

Over the last few weeks, the BTC/AUD remained bullish and crossed above the 25,000 level, but it soon found a strong resistance near the 27,000 on December 8. So far, the BTC/AUD has failed to close above the 27,000 level on the daily chart and it is trading sideways within a narrow range, where the 24,600 level acted as a support.

As the trading volume of the BTC/AUD remained significantly low compared to the first week of December, it appears that the pair will likely remain range-bound this week. Especially, after having a strong bullish run, it wouldn’t be a surprise if it starts a bearish retracement ahead of the holidays when trading volume will likely drop again. Therefore, if the BTC/AUD breaks below the 24,600 level, it might attract additional bearish momentum in the market.

Hence, Australian bitcoin traders should look out for trading opportunities below this major support level around 24,600.

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes about various tech and financial topics. You can reach him at contact@asifimtiaz.com

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Asif Imtiaz

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes about various tech and financial topics. You can reach him at contact@asifimtiaz.com

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