AUD analysis 24.07.2019

The Australian dollar fell during the Asian session to rebound for the fourth consecutive session of its highest since April 24 against the US dollar following developments and economic data that followed the Australian economy and on the eve of developments and economic data expected Wednesday by the US economy, the largest economy in the world .

At 0235 GMT, the AUDUSD fell 0.37% to 0.6979 from the opening levels of 0.7005, after reaching its lowest level since July 12 at 0.6978, Session at 0.7009.

We have followed the Australian economy to reveal the preliminary reading of the industrial PMI for July, which showed the contraction of the breadth to 51.4 compared to 52.0 last June, coincided with the release of the preliminary reading of the PMI services for the month, which also showed The spread widened to 51.9 versus 52.6 in June.

On the other hand, investors expect the US economy to release the preliminary reading of the PMI index for the United States for the month of July, amid the expectations of the industrial sector expanded to 50.9 compared to 50.6 in June, and the expansion of the service sector to the value of 51.6 versus 51.5 in June.

To the release of housing market data with the release of the new home sales index, which may reflect a rise of 5.1% to 659 thousand, compared with a decline of 7.8% at 626 thousand in May, and comes hours before the publication of the durable goods demand index, which represents about Half of consumer spending, which accounts for more than two-thirds of US GDP, and Friday's preliminary GDP reading for the second quarter.

Technical Analysis

The AUDUSD continued its decline to the pivotal support level of 0.6975, which represents the previously breached resistance of the descending main channel appearing in the picture. As noted in our recent reports, the price needs to remain above this level so that the positive scenario remains effective as a break of this level will press On the price to return to the main descending path again.

Now, we prefer to stop the neutral temporarily to monitor the closing of the daily candle for the mentioned level, as breaking it and stability below it will press the price to move towards 0.6832 initially, while consolidation above it will reactivate the scenario of the bullish trend, which is located next target at 0.7140.

The trading range for today is expected among the support at 0.6980 and the resistance at 0.7100

The expected general trend for today: neutral.