AUDUSD Stays Above Important Support, More Gains Likely

Aussie 13

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The Aussie dollar finally managed to gain some bids against the US dollar and climbed above the 0.7780-60 resistance area. The AUDUSD pair has settled above the same and looks like preparing for the next leg in the near term. There are several support areas on the way down for the pair, which might help the pair moving ahead. The Australian House Price Index was released by the Australian Bureau of Statistics earlier during the Asian session. The outcome was on the positive side, as the house price index registered a reading of 1.9% in the fourth quarter of 2014 whereas the market was expecting 1.8%. This might help the Aussie dollar in the short term.

There is a critical bullish trend line formed on the hourly chart of the AUDUSD pair, which might provide support to the pair if it moves lower from the current levels. The most important point is that the pair is currently trading around the 100 and 200 hourly moving averages, which is acting as a barrier for the pair. If the Aussie dollar sellers manage to clear it, then the next support is around the highlighted bullish trend line. The stated trend line is sitting just above the 50% fib retracement level of the last leg from the 0.7625 low to 0.7875 high.

AUDUSD 02.10.2015

On the upside, an immediate resistance can be seen around the 0.7820 level. A break above the same might call for more gains towards the 0.7850 level.

Overall, one might consider buying dips in the AUDUSD pair as long as it is trading above the highlighted trend line.

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