AUD/USD Forecast – Can Aussie Dollar Continue Higher Vs US Dollar

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.

 

AUD/USD Technical Analysis Aussie Dollar US Dollar

 

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.

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