AUD/USD Forecast – Aussie Dollar Downtrend Intact Vs US Dollar
- – The Aussie Dollar declined recently and traded below the 0.7680 support against the US Dollar.
- – There is a major bearish trend line forming with resistance at 0.7660 on the hourly chart of AUD/USD.
- – Recently in Australia, the TD Securities Inflation for Oct 2017 was released by The University of Melbourne – Faculty of Economics and Commerce.
- – The outcome was around the forecast as there was a rise of 0.3% in the TD Securities Inflation (MoM).
Australia’s TD Securities Inflation
Recently in Australia, the TD Securities Inflation for Oct 2017 was released by The University of Melbourne – Faculty of Economics and Commerce. The market was positioned for an increase of around 0.3% in the TD Securities Inflation compared with the previous month.
The actual result was around the forecast as there was a rise of 0.3% in the TD Securities Inflation. Looking at the yearly change, there was an increase of 2.6%, which was better than the last increase of 2.5%. It was also better than the forecast of 2.5%.
Overall, the AUD/USD pair might correct a few pips in the near term, but faces strong resistances near 0.7660 and 0.7680.
AUD/USD Technical Analysis
The Aussie Dollar after trading as high as 0.7729 against the US Dollar faced a lot of offers. The AUD/USD pair started a new downside wave and broke many supports such as 0.7700 and 0.7680 to settle below the 100 hourly simple moving average.
There was also a break below a bullish trend line at 0.7695 on the hourly chart. The pair traded as low as 0.7637 and is currently correcting higher. An initial resistance is near the 23.6% Fib retracement level of the last decline from the 0.7729 high to 0.7637 low.
On the upside, there is a major bearish trend line forming with resistance at 0.7660 on the hourly chart. Above the trend line resistance, the 100 hourly SMA and the 50% Fib retracement level of the last decline from the 0.7729 high to 0.7637 low are major hurdles near 0.7680.
There is a chance of a correction in AUD/USD towards 0.7680-0.7700, but upsides remain capped in the short term.
Tags: AUD/USD, AUD/USD Technical Analysis, Aussie dollar, US Dollar