AUD/USD Bears May Break Below Key Support if US Consumer Confidence Soars

AUDUSD – Technical Analysis for High Low

United States – CB Consumer Confidence

On Tuesday, at 2:00 p.m., the Conference Board Inc. will publish its Consumer Confidence index. It measures the level of a composite index created from data based on a regular monthly household survey.

A higher consumer confidence usually indicates future consumer spending. So, it can significantly affect the overall economic conditions. Hence, binary options traders consider this kind of survey-based index to be a leading indicator of the economy.

Last month, the CB Consumer Confidence index came out at 130.8. This month, the forecast is that the index reading will come out slightly higher, at 131.2.

Australia – Private Sector Credit

On Thursday, at GMT 12:30 a.m., the Reserve Bank of Australia will release the month-over-month Private Sector Credit data. It measures the changes in the total value of new credit issued to consumers and corporations in the country over the previous month.

Binary options investors consider the private sector credit to be an important fundamental indicator of the Australian economy. Because borrowing and spending are highly correlated. Consumers and businesses only take out credit when they feel confident about their ability to pay it back in the future. Hence, it also acts as a measure of consumer and business confidence.

Last month, the private sector credit in Australia increased by 0.3%. The forecast for this month is currently set at an increase of 0.3% as well.

AUD/USD Forecast

AUD/USD Analysis for High Low - 28th March 2018

Since breaking below the uptrend line on February 1, the AUD/USD fell by around 375 pips. Over the last few weeks, the pair mostly remained range bound and formed a downward equidistant channel in the process. Currently, the AUD/USD is trading just above the support level near 0.7685.

The Australian private sector credit may increase 0.3% this month – same as last month. On the other hand, analysts believe that the CB consumer confidence reading in the United States is going to come at 131.2. 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 0.7685, it would likely attract additional bearish momentum in the market.

Hence, Australian binary options traders should look out for trading opportunities below this major support level around 0.7685.

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