AUD/USD Forecast – Aussie Dollar Eyeing To Capitalize On Gains

AUD/USD Forecast – Aussie Dollar Eyeing To Capitalize On Gains

  • – The Aussie Dollar recently moved higher and broke the 0.7500 resistance against the US Dollar.
  • – There was a break above a bearish trend line with resistance at 0.7515 on the hourly chart of AUD/USD.
  • – Earlier today in Australia, the National Australia Bank Business Confidence for Q1 2017 was released, which posted an increase from 5 to 6.

 

National Australia Bank Business Confidence

Today in Australia, the National Australia Bank Business Confidence for Q1 2017 was released. The market was expecting the NAB Index to remain stable near 5 in Q1 2017, compared with the previous quarter.

 

The outcome was better than the forecast, as Q1 2017 National Australia Bank Business Confidence posted a rise from 5 to 6. Also, the economic releases in New Zealand were positive today. Like, the Consumer Price Index for Q1 2017 posted a rise of 2.2% (YoY), which was more than the forecast of 2.0%.

 

Overall, the market sentiment improved a bit for the NZD and AUD, which means AUD/USD may trade further higher above 0.7530.

 

AUD/USD Technical Analysis

The Aussie dollar decline may have come to an end at 0.7490 against the US Dollar, as it started recovering. It has already moved above the 23.6% Fib retracement level of the last fall from the 0.7562 high to 0.7491 low.

 

AUD/USD Technical Analysis Aussie US Dollar

 

The AUD/USD pair also moved past a bearish trend line with resistance at 0.7515 on the hourly chart. However, it failed to break the 50% Fib retracement level of the last fall from the 0.7562 high to 0.7491 low. It started a downside move, but the same broken trend line is now acting as a support at 0.7515.

 

As long as the pair is above 0.7500, there are chances of it moving higher towards 0.7530 or even 0.7550. On the downside, a close below 0.7500 may again put the Aussie under bearish pressure for more declines in the near term towards 0.7460. The hourly RSI has just managed to move above 50, which means AUDUSD could hold the 0.7515 support if buyers remain in action. Buying dips may be considered as along as the pair is above 0.7500.

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