AUD/USD Forecast – Aussie Dollar Could Extend Declines Vs US Dollar
- – The Aussie Dollar declined heavily and broke the 0.7480 support against the US Dollar.
- – There is a key bearish trend line formed with resistance near 0.7430 on the hourly chart of the AUD/USD pair.
- – Recently in Australia, the House Price Index for Q1 2018 was released by the Australian Bureau of Statistics.
- – The outcome was above the forecast of -1.0% as there was a decline of 0.7% in the index (QoQ).
Australia’s House Price Index
Recently in Australia, the House Price Index for Q1 2018 was released by the Australian Bureau of Statistics. The market was positioned for a decline of around 1.0% in the HPI in Q1 2018 compared with the previous quarter.
The actual result was above the forecast of -1.0% as there was a decline of 0.7% in the index. The yearly change in the GDP was also above the forecast of +1.7%, as there was a rise of 2.0% in the HPI. However, the current reading was well below the last reading of +5.0%.
The AUD/USD pair is currently in a bearish zone and it seems like the pair may accelerate declines below 0.7400 in the near term.
AUD/USD Technical Analysis
The Aussie Dollar faced a solid selling interest above the 0.7520 level against the US Dollar. The AUD/USD pair started a major downside move and traded below the 0.7500 and 0.7480 resistance levels to move into a bearish zone below the 100 hourly simple moving average.
The decline was such that the pair even broke the 0.7440 and 0.7400 support levels. A low was formed near 0.7392 before the pair started upside correction. It traded higher above the 0.7400 level and the 23.6% Fib retracement level of the last decline from the 0.7453 high to 0.7392 low.
However, the upside move was capped by the 0.7425 resistance. Moreover, the 50% Fib retracement level of the last decline from the 0.7453 high to 0.7392 low acted as a barrier.
The pair is again trading lower and it may perhaps break the recent low near 0.7392 for more losses in the near term. On the upside, there is a key bearish trend line formed with resistance near 0.7430 on the hourly chart of the AUD/USD pair.
Also published on Medium.
