AUD/USD Forecast – Can Aussie Dollar Continue Higher Vs US Dollar
- – The Aussie Dollar is placed nicely above the 0.7380 support area against the US Dollar.
- – There is a key bullish trend line formed with support near 0.7385 on the hourly chart of the AUD/USD pair.
- – Recently in Australia, the trade balance report for May 2018 was released by the Australian Bureau of Statistics.
- – The outcome was below the forecast of 1,200M as there was a trade surplus of 827M.
Australia’s Trade Balance
Recently in Australia, the trade balance report for May 2018 was released by the Australian Bureau of Statistics. The market was positioned for a trade surplus of 1,200M compared with the last surplus of 977M.
The actual result was below the forecast of 1,200M as there was a trade surplus of 827M. Moreover, the last reading was revised down from 977M to 472M. Exports of goods and services in May 2018 gained 4%, more than the last -2%. . Imports of goods and services in May 2018 increased 3%, more than the last 0%.
The AUD/USD pair is currently correcting lower, but there are many important supports on the downside around the 0.7380 level.
AUD/USD Technical Analysis
The Aussie Dollar started a solid upside move from the 0.7300 support area against the US Dollar. The AUD/USD pair jumped above the 0.7350 and 0.7380 resistance levels and settled above the 100 hourly simple moving average.
The upside move was strong as the pair moved above the 0.7400 resistance. A high was formed at 0.7424 before the pair started a downside correction. It is currently moving towards the 23.6% Fib retracement level of the last wave from the 0.7313 low to 0.7424 high.
However, there are many supports on the downside around the 0.7380 level. There is also a key bullish trend line formed with support near 0.7385 on the hourly chart of the AUD/USD pair.
If the pair fails to hold the 0.7380 support, it could test the 50% Fib retracement level of the last wave from the 0.7313 low to 0.7424 high at 0.7368. On the upside, a break above the 0.7420 resistance may push the pair towards the 0.7450 level.
Also published on Medium.
