AUD/USD Forecast – Can Aussie Dollar Break This Resistance Vs US Dollar?

AUD/USD Forecast – Can Aussie Dollar Break This Resistance Vs US Dollar?

  • – The Aussie Dollar declined recently and traded towards 0.7550 against the US Dollar.
  • – There is a crucial bearish trend line forming with resistance at 0.7580 on the hourly chart of AUD/USD.
  • – Recently in Australia, the Import Price Index for Q1 2018 was released by the Australian Bureau of Statistics.
  • – The outcome was above the forecast of +1.3% as there was a rise in the index by 2.1% (QoQ).

Australia’s Import Price Index

Recently in Australia, the Import Price Index for Q1 2018 was released by the Australian Bureau of Statistics. The market was positioned for a rise of 1.3% in the index in Q1 2018 compared with the previous quarter.

 

The actual result was above the forecast of +1.3% as there was a rise in the index by 2.1% (QoQ). This was also above the last reading of 2%. Similarly, the Export price index registered a rise of 4.9%, which was more than the forecast of 4.1%.

 

The AUD/USD pair is currently consolidating above the 0.7500 support, but it remains at a risk of more declines.

 

AUD/USD Technical Analysis

The Aussie Dollar started a major downside move from the 0.7800 swing high against the US Dollar. The AUD/USD pair declined and tumbled by more than 200 pips below 0.7600. During the decline, it broke the 0.7650 and 0.7620 support levels to settle below the 100 hourly simple moving average.

 

AUD/USD Technical Analysis Aussie Dollar US Dollar

 

It traded as low as 0.7551 and is currently consolidating losses. An initial resistance is near the 23.6% Fib retracement level of the last decline from the 0.7682 high to 0.7551 low. There is also a crucial bearish trend line forming with resistance at 0.7580 on the hourly chart of AUD/USD.

 

The pair has to break the trend line resistance and then 0.7600 to start a recovery. Above 0.7600, the pair may face sellers near the 50% Fib retracement level of the last decline from the 0.7682 high to 0.7551 low at 0.7616.

 

On the other hand, if the pair fails to move higher, it could decline further and break the 0.7550 support level in the near term.


Also published on Medium.

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