AUD/USD Forecast – Aussie Dollar Poised to Gain Further Vs US Dollar
- – The Aussie Dollar formed a decent support base at 0.7760 and moved higher against the US Dollar.
- – There was a break above a key bearish trend line with resistance at 0.7810 on the hourly chart of AUD/USD.
- – Recently in Australia, the National Australia Bank Business Confidence for Jan 2018 was released.
- – The outcome was above the forecast of 10 as there was a rise in the index to 12 in Jan 2018.
Australia’s National Australia Bank Business Confidence
Recently in Australia, the National Australia Bank Business Confidence for Jan 2018 was released. The market was positioned for a minor decline in the index from 11 to 10 in Jan 2018.
The actual result was above the forecast of 10 as there was a rise in the index to 12 in Jan 2018. However, the last reading was revised down from 11 to 10. Moreover, the National Australia Bank Business Conditions index rose from the last reading of 13 to 19. Commenting on the report, the NAB Group Chief Economist, Alan Oster, stated:
The large rise in the NAB Monthly Business Survey business conditions index provides further confirmation of robust business activity in Australia. While the index can bounce around from month-to-month due to changes in seasonal patterns, conditions remain elevated on a trend basis.
The AUD/USD pair is currently gaining upside momentum and it seems like the pair could trade above the 0.7880 level in the near term.
AUD/USD Technical Analysis
The Aussie Dollar found support near the 0.7760 level after a major decline against the US Dollar. The AUD/USD pair started an upside move and traded above the 0.7800 resistance to gain upside momentum in the near term.
The pair also moved above the 50% Fib retracement level of the last decline from the 0.7909 high to 0.7759 low. Moreover, there was a break above a key bearish trend line with resistance at 0.7810 on the hourly chart of AUD/USD.
The pair is now placed nicely above the 0.7840 level and the 100 hourly simple moving average. Once there is a break above 0.7880 and the 76.4% Fib retracement level of the last decline from the 0.7909 high to 0.7759 low, there could be more gains.
On the downside, the 0.7840 and 0.7830 levels are decent support levels.
Also published on Medium.
