AUD/USD Forecast – Aussie Dollar Short-term Bullish Vs US Dollar

AUD/USD Forecast – Aussie Dollar Short-term Bullish Vs US Dollar

  • – The Aussie Dollar after trading as low as 0.7784 against the US Dollar found support.
  • – There was a break above a major bearish trend line with resistance near 0.7820 on the hourly chart of AUD/USD.
  • – Recently in Australia, the AiG Performance of Services Index for August 2017 was released by the Australian Industry Group.
  • – The outcome was below the forecast of 53.0, as there was a decline from 53.0 to 52.1.

Australia’s AiG Performance of Services Index

Recently in Australia, the AiG Performance of Services Index for August 2017 was released by the Australian Industry Group. The market was positioned for no change in the index from the last reading of 53.0.

 

The actual result was below the forecast of 53.0, as there was a decline from 53.0 to 52.1. However, the most important point is the fact that all five of the activity sub-indexes in the Australian PSI were above the neutral 50 level. The report added that:

 

Sales (52.9 points), new orders (51.9) and employment (51.4) growth moderated while stocks (inventory) (51.8) built up at a slower rate. Supplier deliveries (52.6) returned to expansion.

 

Overall, the AUD/USD pair might correct a few pips, but it remains supported on the downside near 0.7840-30.

 

AUD/USD Technical Analysis

The Aussie Dollar extended its declining streak recently and traded below the 0.7800 handle against the US Dollar. The AUD/USD pair traded as low as 0.7784 from where a correction wave was initiated.

 

AUD/USD Technical Analysis Aussie Dollar US Dollar

 

The pair traded higher and moved above the 0.7800 handle and 100 hourly simple moving average. There was also a break above a major bearish trend line with resistance near 0.0.7820 on the hourly chart.

 

The pair traded as high as 0.7874 and is currently correcting lower. On the downside, an initial support is around the 23.6% Fib retracement level of the last wave from the 0.7784 low to 0.7874 high. There is also a bullish trend line with support at 0.7840 to act as a buy zone along with the 38.2% Fib retracement level of the last wave from the 0.7784 low to 0.7874 high.

 

Overall, buying dips can be considered near 0.7840 as long as the pair is above the 100 hourly SMA.

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