AUD/USD Forecast – Aussie Dollar Remains in Bearish Trend Vs US Dollar

AUD/USD Forecast – Aussie Dollar Remains in Bearish Trend Vs US Dollar

  • – The Aussie Dollar declined heavily recently and moved below the 0.7750 support against the US Dollar.
  • – There is a key bearish trend line forming with resistance near 0.7710 on the hourly chart of AUD/USD.
  • – Recently in Australia, the House Price Index for Q4 2017 was released by the Australian Bureau of Statistics.
  • – The outcome was above the forecast of +3.9% as there was a rise in the index by 5% (YoY).

Australia’s House Price Index

Recently in Australia, the House Price Index for Q4 2017 was released by the Australian Bureau of Statistics. The market was positioned for a rise of 3.9% in the index in Q4 2017 compared with the same quarter a year ago.

 

The actual result was above the forecast of +3.9% as there was a rise in the index by 5%. Looking at the quarterly change, the market was looking for no change in the index in Q4 2017, but there was a rise of 1%, which was better than the last -0.2%.

 

The AUD/USD pair is currently trading in a range above 0.7680, but it remains at a risk of more losses in the near term.

 

AUD/USD Technical Analysis

The Aussie Dollar started a major downside move from well above 0.7880 against the US Dollar. The AUD/USD pair tumbled and broke many support levels such as 0.7800, 0.7750 and 0.7720 to settle below the 100 hourly simple moving average.

 

AUD/USD Technical Analysis Aussie Dollar US Dollar

 

The pair traded as low as 0.7686 from where it started an upside correction. It tested the 23.6% Fib retracement level of the last decline from the 0.7803 high to 0.7686 low. Moreover, there is a key bearish trend line forming with resistance near 0.7710 on the hourly chart.

 

The pair must break the trend line and resistance near 0.7710 to start a fresh upside move. The next resistance could be near 0.7750 and the 50% Fib retracement level of the last decline from the 0.7803 high to 0.7686 low.

 

On the downside, the 0.7700 level is a short term support followed by the last swing low of 0.7686. A break below 0.7685 could trigger further losses in the near term.


Also published on Medium.

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