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Forex: AUD/USD capped below 1.0320 on bad Aus housing data

Despite worst decline in housing finance data for Australia since late 2010, last at -1.5% for Dec and previous one revised lower to -0.7% from -0.5%, while most Asian markets closed on holiday, Aussie is still about flat since past Friday's weekly close, last at 1.0320, off session highs at 1.0325. The pair recovers from session lows at 1.0306.

As Valeria Bednarik, Chief Analyst at Fxstreet.com notes: “The hourly chart shows price below its 20 SMA while indicators stand around their midlines, slowly gaining bearish tone yet still in neutral territory,” the analyst says, adding: “In the 4 hours chart bearish potential is stronger with price capped below 20 SMA right above current price. The 1.0260 area is a quite strong static support, so renewed selling pressure below that level, should expose the downside even further, with parity then at sight,” Valeria concludes.

The analyst finds support levels at: 1.0300, 1.0260 and 1.0220, while resistance levels at: 1.0330, 1.0370 and 1.0410.

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