AUD/USD Forecast – Aussie Dollar Struggle To Continue Vs US Dollar
- – The Aussie dollar recent recovery failed to gain momentum above 0.7420 against the US Dollar.
- – The AUD/USD pair moved down, and broke a major support area at 0.7370 on the hourly chart.
- – Today in Australia, the Retail Sales for March 2017 (MoM) released by the Australian Bureau of Statistics posted a decline of 0.1%, where the forecast was +0.3%.
Australia’s Retail Sales
In Australia, the Retail Sales for March 2017 was released by the Australian Bureau of Statistics. The market was positioned for the Retail Sales to increase by 0.3% in March 2017, compared with the previous month.
However, the result was way below the market forecast, as it posted a decline of 0.1%. The last reading was also revised from -0.1% to -0.2%. The report stated that the “following industries rose in trend terms in March 2017: Food retailing (0.1%) and other retailing (0.2%). The following industries fell in trend terms in March 2017: Household goods retailing (-0.3%), Clothing, footwear and personal accessory (-0.3%), and Department Stores (-0.1%). Cafes, restaurants and takeaway food services was relatively unchanged (0.0%)”.
Overall, the result not as the market expecting, putting a lot of pressure on AUD/USD for further losses towards 0.7320 in the near term.
AUD/USD Technical Analysis
The Aussie dollar struggled a lot recently against the US Dollar and moved down by more than 200 pips from the 0.7560 swing high. The most important break was below the 0.7370 support in AUD/USD, which has opened the doors for more declines in the short term.
The pair is currently trading near the 1.236 extension of the last wave from the 0.7367 low to 0.7425 high, and may break it soon. On the upside, the broken support at 0.7370-80 might act as a resistance. Above 0.7380, there is a bearish trend line on the hourly chart at 0.7395, which is likely to act as a major barrier for buyers going forward.
Overall, the pair is under heavy pressure, and may soon break 0.7350 for a move towards the 1.618 extension of the last wave from the 0.7367 low to 0.7425 high at 0.7331. If the Aussie Dollar sellers remain in action, there are chances of a decline towards 0.7320 in the near term.
