AUD/USD Forecast – Aussie Dollar Remains Sell on Rallies Vs US Dollar

AUD/USD Forecast – Aussie Dollar Remains Sell on Rallies Vs US Dollar

  • – The Aussie Dollar remains under bearish pressure below 0.7640 against the US Dollar.
  • – There is a major bearish trend line forming with resistance at 0.7640 on the hourly chart of AUD/USD.
  • – Today in Australia, the trade balance figure for May 2017 released by the Australian Bureau of Statistics posted a trade surplus of 2,471M, better than the forecast.

 

Australia’s Trade Balance

Today in Australia, the trade balance figure for May 2017 was released by the Australian Bureau of Statistics. The market was positioned for a trade surplus of 1,100M in May 2017, compared with the last 555M.

 

However, the actual result was above the forecast, as the trade surplus was 2,471M. However, the last reading was revised down from 555M to 90K. The report added that:

The seasonally adjusted terms, goods and services credits rose $2,578m (9%) to $32,781m. Non-rural goods rose $2,333m (13%), rural goods rose $118m (3%) and non-monetary gold rose $42m (3%). Net exports of goods under merchanting remained steady at $27m. Services credits rose $84m (1%).

 

Overall, the AUD/USD pair may correct a few pips higher in the near term, but likely to face sellers near 0.7620-40.

 

AUD/USD Technical Analysis

The Aussie Dollar struggled a lot during this week and after trading as high as 0.7708 against the US Dollar, there was a downside wave. The AUD/USD pair moved down and broke a few important supports such as the 0.7680 and 0.7640.

 

AUD/USD Technical Analysis Aussie Dollar US Dollar

 

The pair traded as low as 0.7570 from where a correction wave was initiated. The pair is currently trading near the 23.6% Fib retracement level of the last decline from the 0.7682 high to 0.7570 low. However, there is a crucial resistance forming on the upside near 0.7620 and 0.7640.

 

The 0.7640 level was a support earlier, and now it might prevent gains. There is also a major bearish trend line forming with resistance at 0.7640 on the hourly chart of AUD/USD. The same 0.7640 level also coincide with the 100 hourly simple moving average.

 

So, selling rallies near 0.7620-40 might be considered with a stop above the 100 hourly simple moving average. On the downside, a short-term support is at 0.7580-70.

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