AUD/USD Forecast – Can Aussie Dollar Retain Uptrend Vs US Dollar?

AUD/USD Forecast – Can Aussie Dollar Retain Uptrend Vs US Dollar?

  • – The Aussie dollar after trading as high as 0.7679 against the US Dollar found offers.
  • – The AUD/USD moved down, and broke a support trend line at 0.7660 on the hourly chart.
  • – In China today, the official non-manufacturing PMI for March 2017 released by China Federation of Logistics and Purchasing (CFLP) posted a rise from 54.2 to 55.1.

 

Chinese Official Non-Manufacturing PMI

Today in China, the official non-manufacturing PMI for March 2017 was released by China Federation of Logistics and Purchasing (CFLP). The market was positioned for no major change from the last reading of 54.2.

 

However, the outcome was better, as the official non-manufacturing PMI posted a rise of 55.1. Similarly, the Chinese Manufacturing Purchasing Managers Index (PMI) rose from 51.6 to 51.8. In Australia, the Private Sector Credit for Feb (MoM) was released by the Reserve Bank of Australia. The result was positive, as there was a rise of 0.3% in Feb 2017, which was more than the last +0.2%. In terms of the yearly change, there was a rise of 5%, which was less than the last +5.4%.

 

Overall, the Aussie dollar has mixed sentiment, which is why there can be swing moves in AUDUSD towards 0.7640-20.

 

AUD/USD Technical Analysis

The Aussie dollar made a move towards 0.7680 recently against the US dollar, but failed to retain the momentum. As a result, there was a downside move below 0.7660. During the downside, the AUD/USD pair broke the 23.6% Fib retracement level of the last wave from the 0.7586 low to 0.7679 high.

 

AUD/USD Technical Analysis Aussie US Dollar

 

Moreover, there was a close below a support trend line at 0.7660 on the hourly chart. The pair fell towards the 100 simple moving average at 0.7640 where it found support. Moreover, the 38.2% Fib retracement level of the last wave from the 0.7586 low to 0.7679 high also provided support.

 

There is also a connecting trend line at 0.7640, acting as a support. These factors pushed the pair higher, and it is now attempting to reclaim 0.7660. However, it won’t be easy, and I think the pair might dip once more towards 0.7640 before it can climb higher. On the upside, the 0.7680 level remains a major resistance.

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