AUD/USD Forecast – Aussie Dollar Turned Bearish Vs US Dollar?

AUD/USD Forecast – Aussie Dollar Turned Bearish Vs US Dollar?

  • – The Aussie Dollar after failing to stay above 0.8000 against the US Dollar started moving lower.
  • – There was a break below two major bullish trend lines with supports at 0.7990 and 0.7950 on the hourly chart of AUD/USD.
  • – Today in Australia, the trade balance report for June 2017 was released by the Australian Bureau of Statistics.
  • – The outcome was below the forecast of 1,800M, as there was a trade surplus of 856M.

 

Australia’s Trade Balance

Today in Australia, the trade balance report for June 2017 was released by the Australian Bureau of Statistics. The market was positioned for a trade surplus of 1,800M compared with the last 2,471.

 

However, the actual result was below the forecast of 1,800M, as there was a trade surplus of 856M. Imports of goods and services for June 2017 were up by 2%, which was more than the last 1%. Exports of goods and services for June 2017 were down by 1%, compared with the last +9%. The report stated that:

In seasonally adjusted terms, goods and services credits fell $439m (1%) to $31,779m. Non-rural goods fell $740m (4%) and net exports of goods under merchanting fell $1m (4%). Non-monetary gold rose $406m (27%) and rural goods rose $26m (1%). Services credits fell $129m (2%).

 

Overall, the AUD/USD pair may extend its declines and remains sell on rallies near 0.7950-70 in the short term.

 

AUD/USD Technical Analysis

The Aussie Dollar made a nice upside move this past week and traded above 0.8060 against the US Dollar. The AUD/USD pair formed a high near 0.8065 before it started a downside correction towards 0.8000.

 

AUD/USD Technical Analysis Aussie Dollar US Dollar

 

The Aussie Dollar buyers fought hard to prevent declines below 0.8000, but eventually failed. There was a break and close below the 0.8000 handle and the 100 hourly simple moving average.

 

During the downside move, the pair broke two major bullish trend lines with supports at 0.7990 and 0.7950 on the hourly chart. It traded as low as 0.7913 and currently attempting a correction.

 

The broken trend line at 0.7950 and the 50% Fib retracement level of the last decline from the 0.7992 high to 0.7913 low might act as a resistance for more gains in the near term for AUD/USD.

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