FxWirePro: AUD/USD struggles at 55-EMA, RBA’s pessimism and soft housing market data dent Aussie

AUD/USD chart - Trading View 

• AUD/USD is trading in a narrow range, capped below 55-EMA resistance.
   
• RBA minutes and housing data disappointed the Aussie bulls. However downside limited amid improved risk sentiment. 
   
• RBA minutes conveyed significant uncertainties on the economic outlook and noted that the next move could be in either direction depending upon the incoming data. 
   
• Further, Q4 house price index details dropped to -2.4% Q/Q, more than -2.0% forecast and -1.5% earlier. 
   
• The yearly data marked -5.1% contraction versus -0.4% market consensus and -1.9% prior.
   
• That said, expectations of a dovish FOMC result on Wednesday continue to favor the pair’s upside momentum.
   
• Focus also on U.S. Jan Factory Orders for an immediate catalyst. The factory orders are expected to grow by +0.3% against +0.1% previous expansion.
   
• Technical studies support upside in the pair. Break above 55-EMA will see test of 110-EMA.
   
• Major trend is bearish. Rejection at 55-EMA and close below 5-DMA will see downside continuation.

Support levels - 0.7094 (21-EMA), 0.7089 (5-DMA), 0.7003 (Mar 8 low)

Resistance levels - 0.7122 (55-EMA), 0.7164 (110-EMA), 0.7225 (200-DMA)

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