FxWirePro: AUD/USD struggles to hold upbeat Aussie housing data led gains, upside capped at 20H SMA

AUD/USD chart - Trading View 

Aussie edged slightly higher early in the Asian session supported by improvement in Australian HIA New Home Sales Index.

Australia's HIA new home sales rose 0.8 percent q/q in Q2 , the first quarterly improvement since Q4 2017.

The improvement in the June quarter, though marginal, suggests that the decline in new home sales may have started to slow.

AUD/USD edged higher to session highs at 0.6915, but has pared gains to currently trade at 0.6907 at 03:00 GMT.

Upside in the pair has been rejected at 20 SMA on the hourly charts. Technical bias remains strongly bearish.

RSI well below 50 mark and Stochs are sharply lower. Momentum with the bears.

Markets cautious ahead of the key event risks this week which include FOMC meet amid possible resolution of the prolonged US-China trade dispute.

Downside continuation will see test of trendline support at 0.6850. Break above 5-DMA will see minor upside.

Support levels - 0.6850 (trendline), 0.6831 (June 18 low), 0.68

Resistance levels - 0.6948 (5-DMA), 0.6977 (21-EMA), 0.6991 (20-DMA)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.