AUD/USD Forecast – Aussie Dollar in Monstrous Uptrend Vs US Dollar

AUD/USD Forecast – Aussie Dollar in Monstrous Uptrend Vs US Dollar

  • – The Aussie Dollar gained massively recently and traded above 0.7800 against the US Dollar.
  • – There is a crucial bullish trend line with support at 0.7790 forming on the hourly chart of AUD/USD.
  • – Today in China, the Gross Domestic Product (GDP) for Q2 2017 was released by the National Bureau of Statistics of China.
  • – The outcome was positive, as there was an increase of 6.9% (YoY), more than the forecast of 6.8%.

 

Chinese Gross Domestic Product (GDP)

Today in China, the Gross Domestic Product (GDP) for Q2 2017 was released by the National Bureau of Statistics of China. The market was positioned for the GDP to grow by 6.8% in Q2 2017 compared with the same quarter a year ago.

 

However, the actual result was above the forecast, as there was an increase of 6.9%, which was similar to the last reading. In terms of the quarterly change, there was an increase of 1.7%, which was in line with forecast, but more than the last +1.3%. Looking at the urban investment figure, there was a rise of 8.6% in June 2017, compared with the same month a year ago.

 

Overall, the AUD/USD pair may correct a few pips lower, but remains supported near 0.7790-80 in the near term.

 

AUD/USD Technical Analysis

The Aussie Dollar after consolidating near 0.7550-70 against the US Dollar for some time formed a base and moved higher. The upside move was solid, as the AUD/USD pair managed to break a few important hurdles like 0.7625 and 0.7680.

 

AUD/USD Technical Analysis Aussie Dollar US Dollar

 

The pair traded sharply higher by more than 150 pips and moved past 0.7800. A new monthly high was formed at 0.7833 where the pair faced offers. It is currently correcting lower and trading just above the 23.6% Fib retracement level of the last wave from the 0.7713 low to 0.7833 high.

 

On the downside, there is a crucial bullish trend line with support at 0.7790 forming on the hourly chart. The same trend line is near the 38.2% Fib retracement level of the last wave from the 0.7713 low to 0.7833 high.

 

So, buying dips near the trend line support at 0.7800-7790 might be considered in the short term as long as there is no close below it.

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