AUD analysis 29.07.2019

The Australian dollar fluctuated in a tight range slipping towards the Asian session to see its seventh straight session retreat since April 24 against the US dollar on the brink of economic developments and data expected on Monday by the Australian economy and amid a lack of economic data at the beginning of this Week by the US economy, the world's largest economy.

At 02:56 GMT, the AUDUSD fell 0.04% to 0.6908 compared to the opening levels of 0.6918, after recording a low of 0.6903, while recording a high of 0.6920. The pair started the week on a bullish price gap after closing last week at 0.6911.

Investors are currently looking for Australian housing data to be released as the new home sales index for June comes out, hours before the construction permits reading was also released last month, which could reflect slowing growth to 0.2% from 0.7%. May, while the annual reading of the same index on Tuesday may show a decline to 24.3% versus 19.6%.

On the other hand, markets are looking to kick off the FOMC meeting on Tuesday in Washington ahead of next Wednesday's disclosure of the decisions and directions of the Fed's monetary policy makers and the upcoming Federal Reserve Governor Jerome Powell's upcoming press conference in the shadow of expectations for interest rate cuts Federal Reserve by 25 basis points to between 2.00% and 2.25%.

Technical Analysis

AUDUSD was able to reach and settle around our first target of 0.6900, and is under further negative pressure expected to be affected by the move within the descending channel shown on the chart above, waiting for further downside to visit the 0.6832 level which is our next main target.

Therefore, the bearish trend will remain likely during the coming sessions provided that the price remains stable below 0.6975.

The trading range for today is expected among the support at 0.6850 and resistance at 0.6950

The general trend for today is bearish.