AUD/USD Forecast – Aussie Dollar to Decline Further Vs US Dollar

AUD/USD Forecast – Aussie Dollar to Decline Further Vs US Dollar

  • – The Aussie Dollar is currently under pressure and it recently declined below 0.7900 against the US Dollar.
  • – There is a major bearish trend line forming with resistance at 0.7880 on the hourly chart of AUD/USD.
  • – Recently in Australia, the Construction Work Done for Q4 2017 was released by the Australian Bureau of Statistics.
  • – The outcome was below the forecast of -10.0% as there was a decline of 19.4% in the work done.

Australia’s Construction Work Done

Recently in Australia, the Construction Work Done for Q4 2017 was released by the Australian Bureau of Statistics. The market was positioned for a decline of around 10% in the work done in Q4 2017.

 

The actual result was below the forecast of -10.0% as there was a decline of 19.4% in the work done. Moreover, the Wage Price Index for Q4 2017 was also released today. It posted an increase of 0.6% (QoQ), more than the forecast of 0.5%. The report added that:

 

The trend and seasonally adjusted indexes for Australia both rose 0.6% in the December quarter 2017. This continued the moderate rate of wage growth recorded by the series over the last two years.

 

The AUD/USD pair failed to move higher and it seems like there is a lot of pressure on the pair since it is below the 0.7900 level.

 

AUD/USD Technical Analysis

The Aussie Dollar after trading above the 0.7950 level found sellers against the US Dollar. The AUD/USD pair formed a top near the 0.7988 level and started a downside move. It declined and traded below the 0.7920 and 0.7900 support levels.

 

AUD/USD Technical Analysis Aussie Dollar US Dollar

 

The pair even broke the 50% Fib retracement level of the last wave from the 0.7772 low to 0.7988 high. It is now trading well below the 0.7880 level and the 100 hourly simple moving average.

 

On the upside, there is a major bearish trend line forming with resistance at 0.7880 on the hourly chart. If the pair corrects higher from the current levels, it is likely to face sellers near 0.7880 and 0.7900.

 

On the downside, the next major support is near the 0.7820 level and the 76.4% Fib retracement level of the last wave from the 0.7772 low to 0.7988 high.


Also published on Medium.

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