AUD/USD Forecast – Aussie Dollar to Bounce Back Above 0.7620 Vs US Dollar
- – The Aussie Dollar is trading nicely above the 0.7580 support against the US Dollar.
- – There is a key bullish trend line forming with support near 0.7585 on the hourly chart of AUD/USD.
- – Recently in Australia, the TD Securities Inflation report for Nov 2017 was released by The University of Melbourne – Faculty of Economics and Commerce.
- – The outcome was above the forecast of +0.1% as there was an increase of 0.2% in the inflation in Nov 2017.
Australia’s TD Securities Inflation
Recently in Australia, the TD Securities Inflation report for Nov 2017 was released by The University of Melbourne – Faculty of Economics and Commerce. The market was positioned for a rise of 0.1% in the TD Securities Inflation compared with the previous month.
The actual result was above the forecast of +0.1% as there was an increase of 0.2% in the inflation in Nov 2017, but it was less than the last +0.3%. In terms of the yearly change, the TD Securities Inflation posted a rise of 2.7%, which was more than the last +2.6%. The report added that:
Overall, the AUD/USD pair remains supported on the downside as long as it is above the 0.7580 support area.
AUD/USD Technical Analysis
The Aussie Dollar started a nice upside move after consolidating around the 0.7550 support for some time against the US Dollar. The AUD/USD pair broke a few important resistance levels such as 0.7580 and 0.7600 to settle above the 100 hourly simple moving average.
During the upside, the pair broke two bearish trend lines at 0.7565 on the hourly chart. It traded as high as 0.7638 from where it started a downside correction. It moved below the 50% Fib retracement level of the last wave from the 0.7550 low to 0.7638 high.
However, the downside move was protected by the 0.7580 support, the 100 hourly simple moving average and the 61.8% Fib retracement level of the last wave from the 0.7550 low to 0.7638 high. There is also a key bullish trend line forming with support near 0.7585 on the hourly chart.
Therefore, AUD/USD remains supported above 0.7580 and it might soon bounce back above 0.7600-0.7620 in the near term.
Also published on Medium.
