AUD/USD Set to Break Below Key Support if US Existing Home Sales Rebounds

United States – Existing Home Sales

On Monday, at GMT 2:00 p.m., the US National Association of Realtors released the existing home sales number. It is an annualized number of residential buildings that were sold during the last month in the country. However, this figure excludes the number newly building constructions.

The sale of an existing home usually has a wide-spread positive ripple effect in the local economy. So, collectively this figure acts as an excellent leading indicator of the overall economic health of the country. Therefore, binary options traders consider the existing home sales number to be an important data as it tends to have a considerable market impact.

Last month, the US existing home sales figure came out at 5.54 million. The forecast for this month is currently set at 5.55 million.

Australia – CB Leading Index

On Monday, at GMT 2:30 p.m., the Conference Board Inc will release the month-over-month leading index for Australia. It measures the changes in the level of a composite index based seven other major fundamental indicators.

The CB leading index aggregates some of the other indicator data. So, binary options investors consider this to be an important representation of the overall Australian economy. However, since most of these data are previously released, the CB leading index tends to have a minimized immediate market impact.

Last month, the CB leading index decreased by -0.1%. If the negative trend continues this month, it would likely have a bearish influence on the Australian Dollar against other major currencies.

AUD/USD Forecast

Since January 26, the AUD/USD remained bearish and formed a downward slopping equidistant channel. Last week, the pair failed to close above the resistance near 0.7785 and turned bearish. However, after reaching the 0.7645 level, it found a support. So far, the pair failed to close below it.

The Australian CB leading index fell by -0.1% last month and the trend looks bearish. On the other hand, analysts are expecting the US existing home sales figure to increase from 5.54 million to 5.55 million. We believe it would set a bearish fundamental outlook for the AUD/USD this week. Therefore, if the AUD/USD closes below the support near 0.7645, it would likely attract additional bearish momentum in the market.

Hence, US binary options traders should look out for trading opportunities below this major support level around 0.7645.

BTC/USD Forecast

The BTC/USD has been trading mostly sideways for the last several weeks, but formed a district downtrend line. Last week, the BTC/USD turned bullish and broke above this downtrend line. However, as soon as the price reached near the 9,070 level, it found a strong resistance.

There have been a lot of negative news around cryptocurrency trading in the last few weeks. For example, Latvian lawmakers are considering putting a 20% capital gain tax on bitcoin transactions. However, last Friday, Coinbase said they have effectively blocked WikiLeaks Shop from transacting on the exchange. This instance of self-regulation from one of the major cryptocurrency exchanges created an optimistic momentum for bitcoin. Therefore, we believe, if the BTC/USD breaks above the resistance near 9,070, it will likely attract additional bullish momentum in the market.

Hence, US bitcoin traders should look out for trading opportunities above this major resistance level around 9,070.

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