Sell Rallies In AUDUSD

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The US dollar surged higher against most major currencies recently, including the Aussie dollar. The main reason for that was the economic releases in the US, which were on the positive side. The AUDUSD pair traded lower and even challenged the 0.7640 support area. Earlier during the Asian session, the Australian HIA New Home Sales representing the number of new home sales in Australia was released by the Housing Industry Association. The outcome was on the lower side, as it gained by 1.1% in February 2015, compared to the last increase of 1.8%. This also pushed the AUDUSD pair lower.

There are a couple of bearish trend lines formed on the hourly chart of the AUDUSD pair, which are acting as a hurdle for the Aussie dollar buyers. The pair is currently trading around the first trend line and struggling to settle above it. If it clears the same, then there is a chance of the pair testing the second major bearish trend line. The 23.6% fib retracement level of the last leg from the 0.7808 high to 0.7633 low is just below the trend line. So, there is a major resistance forming around the 0.7680 level where the Aussie dollar sellers could appear and protect the upside. Any further gains look impossible as of now, as the US dollar is still on the top and might continue to trade higher in the near term.

AUDUSD 03.31.2015

On the downside, the last low around 0.7640 remains the key for AUDUSD, as a break below the same might call for more losses.

Overall, one might consider selling rallies in the AUDUSD pair as long as it stays below the major bearish trend line.

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