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

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

  • – The Aussie Dollar recently traded as high as 0.7897 against the US Dollar before starting a correction.
  • – There is a crucial bullish trend line forming with support at 0.7825 on the hourly chart of AUD/USD.
  • – Recently in Australia, the New Motor Vehicle Sales report for Sep 2017 was released by the Australian Bureau of Statistics.
  • – The outcome was below the forecast of +0.2%, as there was a decline in sales by 0.5% (MoM).

Australia’s New Motor Vehicle Sales

Recently in Australia, the New Motor Vehicle Sales report for Sep 2017 was released by the Australian Bureau of Statistics. The market was positioned for an increase of around 0.2% in sales compared with the previous month.

 

The actual result was below the forecast of +0.2%, as there was a decline in sales by 0.5%. Looking at the yearly change, there was a decline of 0.8% in sales, which was disappointing compared with the last increase of 1.7%. The report added that:

 

When comparing national trend estimates for September 2017 with August 2017, sales for other vehicles increased by 0.7%. By contrast, Passenger vehicles and Sports utility vehicles decreased by 1.0% and 0.1% respectively.

 

Overall, the AUD/USD pair might correct a few pips toward 0.7820, but it remains in an uptrend as long as above 0.7800.

 

AUD/USD Technical Analysis

The Aussie Dollar gained momentum recently and moved above the 0.7850 resistance against the US Dollar. The AUD/USD pair traded as high as 0.7897 against the US Dollar before starting a correction.

 

AUD/USD Technical Analysis Aussie Dollar US Dollar

 

The pair traded lower and moved below the 23.6% Fib retracement level of the last wave from the 0.7770 low to 0.7897 high. However, the downside move was protected by the 0.7835 support and the 100 hourly simple moving average.

 

Moreover, the 50% Fib retracement level of the last wave from the 0.7770 low to 0.7897 high also stopped further declines. On the downside, there is a crucial bullish trend line forming with support at 0.7825 on the hourly chart, which remains a key barrier for more declines in AUD/USD.

 

Overall, buying dips can be considered toward 0.7825-20 as long as there is no break below the trend line support.

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