AUD/USD Forecast – Aussie Dollar to Gain Upside Momentum Vs US Dollar

AUD/USD Forecast – Aussie Dollar to Gain Upside Momentum Vs US Dollar

  • – The Aussie Dollar formed a major bottom near the 0.7710 level against the US Dollar.
  • – There was a break above a major bearish trend line with resistance at 0.7750 on the hourly chart of AUD/USD.
  • – Recently in Australia, the RBA Interest Rate Decision March 2018 was announced by the Reserve Bank of Australia.
  • – The outcome was in line with the forecast as there was no change in rate from 1.5% in March 2018 by the RBA.

RBA Interest Rate Decision

Recently in Australia, the RBA Interest Rate Decision March 2018 was announced by the Reserve Bank of Australia. The market was positioned for no change in the interest rates in March 2018 from 1.5% by the RBA.

 

The actual result was in line with the forecast as there was no change in rate from 1.5% in March 2018 by the RBA. Moreover, the Retail Sales for Jan 2018 was released by the Australian Bureau of Statistics. The market was looking for a rise of 0.4% in Sales. However, the actual result was a bit lower, as there was a rise in sales by 0.1% in Jan 2018.

 

The AUD/USD pair has moved into a positive zone and it may continue to rise further above 0.7800 in the near term.

 

AUD/USD Technical Analysis

The Aussie Dollar was in a major downtrend towards the 0.7700 level against the US Dollar. The AUD/USD pair formed a major bottom near the 0.7710 level and later it started an upside move from the 0.7712 low.

 

AUD/USD Technical Analysis Aussie Dollar US Dollar

 

The pair traded higher and broke the 50% Fib retracement level of the last decline from the 0.7818 high to 0.7712 low. The upside move was positive as there was a close above the 0.7740 level and the 100 hourly simple moving average.

 

There was also a break above a major bearish trend line with resistance at 0.7750 on the hourly chart of AUD/USD. The pair is now trading around the 0.7790 level. It must break the 76.4% Fib retracement level of the last decline from the 0.7818 high to 0.7712 low to gain upside momentum.

 

There can be a minor downside correction, but the overall bias is positive and the pair may soon move past 0.7800.


Also published on Medium.

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