Forex: AUD/USD from highs to lows after Australian building permits

The Australian Dollar has lost its bias tone initiated in early Asian trade after very poor Australian building permits in December, down at -4.4% vs + 1% consensus. The pair, reaching its peak at 1.0430 - descending trendline resistance - has now fallen to session low at 1.0414, printing in the process a 1 hour bearish engulfing candle.

According to Ivan Delgado, head of Asian analysts at FXstreet.com: "Price remains heavy with the sellers holding the upper hand as price contiues to give clues of a pre-breakout scenario to the downside. From an hourly chart, lower lows and lower highs suggest squeeze of longs remains in place despite Friday's false break down. Potential target for bears is 1.0350, while only a penetration of 1.0450 may ease buyers pressure, which would be further confirmed if 1.0480-1.05 contention area is regained."