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Investors Turning Cautious Against US Dollar

Today doesn’t seems to be a good day for US dollar as it is losing some ground against all its major counterparts. Let’s have a look at AUDUSD which is trying to break out from the falling channel after the missed ISM manufacturing data. Yesterday also US data missed the economist’s expectations after which Investors seems cautious with US dollar. According to the data the economic activity in the manufacturing sector expanded in September for the 16th consecutive month. The September PMI registered 56.6%, a decrease of 2.4% points from August’s reading of 59%. Economists were expecting a reading of 58.6.

AUDUSD : Hourly Chart

AUDUSD trimmed all its losses from the disappointing retail sales data. On the hourly chart, the pair is following a downward sloping channel trend and found support from the falling support trend line. The pair tried to break out after the release of the US data but seems like the 100 day SMA is also acting as resistance for the pair. Most probably it will fail to hold gains above the falling resistance trend line.

AUDUSD : Weekly Chart

On the weekly chart, the trend clearly seems bearish and the pair is currently testing the key support at .8658. If it rises from this support level we might see that pair posting some gains but the gains would be capped as it will find resistance from .8832 or .9037 or from the falling resistance trend line.