AUD/USD Forecast – Aussie Dollar Broke Crucial Resistance Vs US Dollar?

AUD/USD Forecast – Aussie Dollar Broke Crucial Resistance Vs US Dollar?

  • – The Aussie Dollar after declining towards the 0.7840 level against the US Dollar found support and moved higher.
  • – There was a break above a major bearish trend line with resistance at 0.7880 on the hourly chart of AUD/USD.
  • – Today in China, the Industrial Production figure for July 2017 was released by the National Bureau of Statistics of China.
  • – The outcome was below the forecast of +7.2%, as there was an increase of 6.4% (YoY).

China’s Industrial Production

Today in China, the Industrial Production figure for July 2017 was released by the National Bureau of Statistics of China. The market was positioned for an increase of 7.2% in the production compared with the same month a year ago.

 

However, the actual result was below the forecast of +7.2%, as there was an increase of 6.4%. It was also a lot lower compared with the last increase of 7.6%.  Moreover, the urban investment figure for July 2017 was also published. The market was looking for an increase of 8.6% in the production compared with the same month a year ago. However, the actual result was disappointing, as the increase was 8.3%.

 

Overall, the AUD/USD pair may correct a few pips in the near term, but likely to find support around 0.7880.

 

AUD/USD Technical Analysis

The Aussie Dollar was under a lot of pressure this past week, as it traded below the 0.7900 support against the US Dollar. The AUD/USD pair traded as low as 0.7838 from where a correction wave was started.

 

AUD/USD Technical Analysis Aussie Dollar US Dollar

 

During the upside move, there was a break above a major bearish trend line with resistance at 0.7880 on the hourly chart of AUD/USD and the 100 hourly simple moving average.

 

The pair traded as high as 0.7918 after the break and currently correcting lower. An initial support is around the 23.6% Fib retracement level of the last wave from the 0.7838 low to 0.7918 high.

 

However, the most important support sits around the 38.2% Fib retracement level of the last wave from the 0.7838 low to 0.7918 high and the 100 hourly simple moving average at 0.7885. Overall, buying dips near 0.7880-0.7885 can be considered.

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