FXStreet (Guatemala) – AUD/USD is trading at 0.7749 with a high of 0.7752 and a low of 0.7747.
AUD/USD enters Asia with depressed bulls that have been unable to break up out of the consolation phase of the recent minor recovery from the 0.76 handle. The data overnight was marginal with little impact on the market, with US housing starts missing expectations in a turnaround from previous. We do not have anything to note from the docket today from Australia except for Westpac Leading Index (MoM) (May) but it is all eyes on the FOMC in the US session.
There is an ascending support line from here that is containing any downside also. At closer inspection, a bearish pattern is developing in the broader downtrend – a rising wedge formation. If tested and broken now to the downside then this could be the catalyst for the next leg towards yearly lows while contained below the 0.7788 level and 55 day ma. The bears target on a break could be the 0.7534 level and April low ahead of the base of the 2 year down channel at 0.7258.
(Market News Provided by FXstreet)