AUD/USD Forecast – Aussie Dollar To Break Higher Vs US Dollar

AUD/USD Forecast – Aussie Dollar To Break Higher Vs US Dollar

  • – The Aussie Dollar after trading below the 0.7980 level against the US Dollar started a recovery.
  • – There is a major bearish trend line forming with resistance near 0.8030 on the hourly chart of AUD/USD.
  • – Recently in Australia, the New Motor Vehicle Sales for August 2017 was released by the Australian Bureau of Statistics.
  • – The outcome was above the forecast of -1%, as there was no decline in sales (MoM).

Australia’s New Motor Vehicle Sales

Recently in Australia, the New Motor Vehicle Sales for August 2017 was released by the Australian Bureau of Statistics. The market was positioned for a decline of 1% in sales compared with the previous month.

 

The actual result was above the forecast of -1%, as there was no decline in sales. The yearly change in the sales was +1.7%, but was lower than the last increase of 1.8%.  The report added that:

 

When comparing national trend estimates for August 2017 with July 2017, sales for Sports utility vehicles and Other vehicles increased by 0.8% and 0.7% respectively. By contrast, Passenger vehicles decreased by 0.4%.

 

Overall, the AUD/USD pair is currently attempting an upside break above 0.8030, and it succeeds, there can be more gains.

 

AUD/USD Technical Analysis

The Aussie Dollar was under a bearish pressure this past week and moved below the 0.8050 and 0.7980 support levels against the US Dollar. The AUD/USD pair traded as low as 0.7955 from where a recovery was initiated.

 

AUD/USD Technical Analysis Aussie Dollar US Dollar

 

The pair traded higher and move above 23.6% Fib retracement level of the last decline from the 0.8124 high to 0.7955 low. The pair also moved above the 0.8000 handle and the 100 hourly simple moving average. At the moment, the pair is trading near a major resistance at 0.8030-35.

 

On the upside, there is a major bearish trend line forming with resistance near 0.8030 on the hourly chart. The trend line resistance is also near the 38.2% Fib retracement level of the last decline from the 0.8124 high to 0.7955 low.

 

Once there is a proper close above the trend line resistance at 0.8030, the pair could head towards the next resistance at 0.8060. On the downside, the 0.8000 handle and the 100 hourly SMA are decent supports and buy zones.

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