AUD/USD Forecast – Aussie Dollar To Gain Traction Vs US Dollar?
- – The Aussie Dollar moved higher and traded above the 0.7700 resistance against the US Dollar.
- – There was a break above a major bearish trend line with resistance near 0.7695 on the hourly chart of AUD/USD.
- – Recently in Australia, the Retail Sales report for Feb 2018 was released by the Australian Bureau of Statistics.
- – The outcome was above the forecast of +0.3% as there was a rise in the sales by 0.6% (MoM).
Australia’s Retail Sales
Recently in Australia, the Retail Sales report for Feb 2018 was released by the Australian Bureau of Statistics. The market was positioned for a rise of 0.3% in sales in Feb 2018 compared with the previous month.
The actual result was above the forecast of +0.3% as there was a rise in the sales by 0.6%. This was also better than the last reading of +0.1%. The report added:
Online retail turnover contributed 5.1 per cent to total retail turnover in original terms in February 2018. In February 2017 online retail turnover contributed 3.6 per cent to total retail.
The AUD/USD pair is currently trading in a positive zone and it may continue to rise in the near term towards 0.7730 and 0.7750.
AUD/USD Technical Analysis
The Aussie Dollar formed a decent support near the 0.7650 level against the US Dollar. The AUD/USD pair started an upside move, traded above the 0.7680 and 0.7700 resistance levels, and settled above the 100 hourly simple moving average.
The pair even broke the 76.4% Fib retracement level of the last decline from the 0.7703 high to 0.7666 low. More importantly, there was a break above a major bearish trend line with resistance near 0.7695 on the hourly chart of AUD/USD.
The pair may soon break the 1.236 Fib extension of the last decline from the 0.7703 high to 0.7666 low. Above the 0.7715 level, the next target for buyers could be around the 0.7730 level, which is the 1.618 Fib extension of the last decline from the 0.7703 high to 0.7666 low.
Overall, the pair remains supported for more gains and any dips towards 0.7700 and 0.7680 are likely to find buyers in the near term.
Also published on Medium.
