AudUsd Short Setup

Summary
QoQ and YoY House Price index and RBA Meeting’s Minutes are due in a few. With HPI QoQ forecasted to be below 2016’s last quarter, Traders are probably going to react to the Reserve Bank’s views on labor market and Housing as the bank has highlighted those two as key areas of concern. We have seen developments in the labor market in the first quarter of 2017 with a 0.7% forecast for the second quarter. The recent Micro-prudential measures taken are closely monitored by the RBA to see what impact does it have on the Housing market.

Price opened within a bull area zone at the beginning of the month. We saw Bulls taking long positions at MM2 with an obvious bull target of MM4. Price failed to break beyond the 0.76500 psych. Should price fail to break beyond the 0.76500 level, a key immediate level of support is eyed at MR1.

Though price didn't come off the 55 Moving Average, price seem to have double topped. Also with the 21 acting as strong dynamic support, I am a bit weary that this will easily move down. A break down beyond the 21 and trend line would be cool and a retest at the weekly pivot (Which is also the same level where a break down the trend line would occur).

Price is currently at support at DM2. A break down through this level and a retest at the role reversal would be much safer for an entry.

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