AUD/USD Would Likely Go Further Down Once the Price Penetrates Below 0.7160

Australia – House Price Index

Tomorrow, at GMT 12:30 a.m., the Australian Bureau of Statistics will release 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 binary options traders 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 is set at an additional increase of 2.0%.

United States – Building Permits

On Wednesday, at GMT 1:30 p.m., the US Census Bureau will release the Building Permits figure, which is an annualized number of new building permits for the residential housing sector issued during the last month.

Since getting a building permit usually indicate future construction work, binary options investors consider this data to be a leading indicator of the overall economic activity in the country.

Last month, 1.16 million building permits were issued and this month, analysts are expecting the figure to come out around 1.16 million.

Trade Recommendation for the AUD/USD

AUDUSDDaily

Since the start of November, the AUD/USD has remained very bullish. However, the uptrend was capped around the resistance level at 0.7350 by the end of November.

Last week, the AUD/USD price penetrated and closed below the uptrend line generated in November.

Although the AUD/USD price immediately started a retracement, soon it resumed the downtrend. Currently, the minor support zone around 0.7160 is holding the AUD/USD price from going further down.

Under the circumstances, it is recommended that traders consider placing a PUT order for the AUD/USD with their binary options brokers once the price penetrates and closes below the support around the 0.7160.

Recommended Broker: IQ Option

Asif Imtiaz

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and write on various tech and financial topics. You can reach him at contact@asifimtiaz.com

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