AUD/USD Forecast – Can Aussie Dollar Hold 0.7940 Support Vs US Dollar?

AUD/USD Forecast – Can Aussie Dollar Hold 0.7940 Support Vs US Dollar?

  • – The Aussie Dollar made a nice upside move and traded as high as 0.8023 against the US Dollar.
  • – Later, there was a downside move below an ascending channel with support at 0.7970 on the hourly chart of AUD/USD.
  • – Recently in Australia, the Employment Change figure for Dec 2017 was released by the Australian Bureau of Statistics.
  • – The outcome was above the forecast of 9.0K as there was change of 34.7K in Dec 2017.

Australia’s Employment Change

Recently in Australia, the Employment Change figure for Dec 2017 was released by the Australian Bureau of Statistics. The market was positioned for a change of 9.0K in Dec 2017 compared with the last 61.6K.

 

The actual result was above the forecast of 9.0K as there was change of 34.7K in Dec 2017. The last reading was also revised up to 63.6K. On the other hand, the unemployment rate in Dec 2017 was up from 5.4% to 5.5%. The report added that:

 

Unemployment increased 20,500 to 730,600. The number of unemployed persons looking for full-time work increased 9,900 to 501,800 and the number of unemployed persons only looking for part-time work increased 10,600 to 228,800.

 

The AUD/USD pair was seen trading a few pips down and it is currently trading near a major support area at 0.7940.

 

AUD/USD Technical Analysis

The Aussie Dollar started a decent upside move from the 0.7847 swing low against the US Dollar. The AUD/USD pair climbed higher and broke the 0.7900 and 0.7940 resistance levels. The upside move was strong as there was a break above the 0.8000 level as well.

 

AUD/USD Technical Analysis Aussie Dollar US Dollar

 

A high was formed at 0.8023 from where a downside correction was initiated. The pair moved down and broke the 23.6% Fib retracement level of the last wave from the 0.7847 low to 0.8023 high.

 

During the downside, the pair broke an ascending channel with support at 0.7970 on the hourly chart. At the moment, the pair is trading near a major support at 0.7940 and the 100 hourly simple moving average, which is also the 50% Fib retracement level of the last wave from the 0.7847 low to 0.8023 high.

 

Therefore, the 0.7940 support holds a lot of importance. The pair must stay above 0.7940 to avoid declines in the near term.


Also published on Medium.

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