AUD/USD Looks to Decline after the Pair Found Strong Resistance Near 0.7575

United States – Existing Home Sales

Yesterday, at GMT 3:00 p.m., the US National Association of Realtors released the existing home sales number, which is the annualized number of residential buildings that were sold during the last month in the country. However, this figure excludes the number newly building constructions.

Since the sale of an existing home usually has a wide-spread positive ripple effect in the local economy, collectively this figure acts as an excellent leading indicator of the overall economic health of the country. Therefore, binary options investors 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 5.47 million and the forecast for this month was set at 5.32 million. However, the actual figure came out well below the forecast at 5.08 million.

Australia – House Price Index

Today, at GMT 12:30 a.m., the Australian Bureau of Statistics released the House Price Index (HPI), which measures the changes in the selling price of houses in the 8 state capitals in Australia.

Since rising house prices indicate that investors are confident about purchasing houses and vice-versa, it can US binary options brokers consider the HPI to be a leading indicator of investor confidence in the country. The HPI is usually released every three months in a quarter-over-quarter format.

Last month, the Australian HPI suggested that house prices in Australia’s 8 state capitals have increased by 4.7% and the forecast for this month was set at an additional increase of 2.0%. However, the actual figure came out much lower than what the market was expecting, at 0.2% increase.

Trade Recommendation for the AUD/USD

AUDUSDDaily

Since January 15, 2016, the AUD/USD price has remained in a strong uptrend, but the strong uptrend found some sizable resistance around the psychologically important 0.7575 level last week. Although the AUD/USD price penetrated and closed above this pivot level for a few days, last Friday, the bullish momentum faded away and the price closed below the 0.7575 level.

As the Australian House Price Index has increased at a much lower pace, only 0.2% against a forecast of 2%, the fundamental outlook for the AUD/USD also suggests a bearish retracement move this week.

Hence, it would be recommended that binary options traders consider placing a PUT order for the AUD/USD with their binary options brokers at the current market price level.

Recommended Broker for US traders: Finpari

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