AUD/USD Forecast – Aussie Dollar is Recovering Nicely Vs US Dollar

AUD/USD Forecast – Aussie Dollar is Recovering Nicely Vs US Dollar

  • – The Aussie Dollar is moving higher and is currently above 0.7550 against the US Dollar.
  • – There are two bullish trend lines forming with support at 0.7560 and 0.7540 on the hourly chart of AUD/USD.
  • – Recently in Australia, the Westpac Consumer Confidence for Dec 2017 was released by the Faculty of Economics and Commerce Melbourne Institute.
  • – The outcome was above the forecast of +2.0% as there was an increase of 3.6% in the Confidence index in Dec 2017.

Australia’s Westpac Consumer Confidence

Recently in Australia, the Westpac Consumer Confidence for Dec 2017 was released by the Faculty of Economics and Commerce Melbourne Institute. The market was positioned for a rise of 2% in the Confidence index in Dec 2017.

 

The actual result was above the forecast of +2.0% as there was an increase of 3.6% in the Confidence index in Dec 2017, which was far better than the last -1.7%. The report added that:

 

This is a surprisingly strong result and confirms the lift we have seen in the Index over the last three months. The average reading for the Index in the December quarter is 5% above the average for the September quarter when we saw a disturbing slump in consumer spending.

 

Overall, the AUD/USD pair is positioned nicely above the 0.7540 support and it might continue to move higher.

 

AUD/USD Technical Analysis

The Aussie Dollar formed a decent support base around 0.7500 against the US Dollar. The AUD/USD pair started an upside move, broke the 0.7510 resistance, cleared a bearish trend line on the hourly chart at 0.7530 and managed to settle above the 100 hourly simple moving average.

 

AUD/USD Technical Analysis Aussie Dollar US Dollar

 

During the upside, the pair moved above the 38.2% Fib retracement level of the last decline from the 0.7653 high to 0.7501 low. It seems like the current price action is positive above 0.7550 and the pair might trade further higher.

 

At the moment, the pair is struggling to break the 50% Fib retracement level of the last decline from the 0.7653 high to 0.7501 low. Once the pair breaks the 0.7580 resistance, it could easily move above the 0.7600 level in the near term.

 

On the downside, there are two bullish trend lines forming with support at 0.7560 and 0.7540 on the hourly chart. Therefore, if the pair corrects lower, it could find support near 0.7540-60.


Also published on Medium.

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