AUD/USD Forecast – Aussie Dollar Surging Higher Vs US Dollar
- – The Aussie Dollar is gaining pace and is currently well above the 0.7800 level against the US Dollar.
- – The AUD/USD is about to settle above a contracting triangle with resistance at 0.7830 on the hourly chart of AUD/USD.
- – Recently in Australia, the AiG performance of the Mfg Index for Dec 2017 was released by the Australian Industry Group.
- – The outcome was around the forecast of 56.0 as there was a minor decline in the index from 57.3 to 56.2.
Australia’s AiG performance of the Mfg Index
Recently in Australia, the AiG performance of the Mfg Index for Dec 2017 was released by the Australian Industry Group. The market was positioned for a minor decline in the index from 57.3 to 56.0.
The actual result was around the forecast of 56.0 as there was a minor decline in the index from 57.3 to 56.2. The decline was not more than 1.5 points, which can be seen as a neutral outcome for AUD/USD.
The pair might continue to trade higher as it has formed a decent support base above the 0.7800 level.
AUD/USD Technical Analysis
The Aussie Dollar started a solid upside wave from the 0.7650 swing low against the US Dollar. The AUD/USD pair was able to break the 0.7700 and 0.7800 resistance levels and succeeded in closing above the 100 hourly simple moving average.
The pair is following a bullish path and is about to settle above a contracting triangle with resistance at 0.7830 on the hourly chart. The recent high was 0.7834 and an initial support on the downside is around the 23.6% Fib retracement level of the last wave from the 0.7793 low to 0.7834 high.
Further to the downside, the pair will mostly find bids near the triangle trend line at 0.7810. Moreover, the 50% Fib retracement level of the last wave from the 0.7793 low to 0.7834 high is also around the same trend line.
Therefore, if the pair corrects lower from the current levels, it will most likely find support at 0.7800-0.7810. On the upside, a break above the 0.7840 level is needed for buyers to gain traction.
Also published on Medium.
