AUD/USD Forecast – Aussie Dollar Facing Key Resistance Vs US Dollar

AUD/USD Forecast – Aussie Dollar Facing Key Resistance Vs US Dollar

  • – The Aussie Dollar recovered nicely from the 0.7365 swing low against the US Dollar.
  • – There is a major bearish trend line formed with resistance near 0.7430 on the hourly chart of the AUD/USD pair.
  • – Recently in China, the Gross Domestic Product (GDP) for Q2 2018 was released by the National Bureau of Statistics of China.
  • – The outcome was above the forecast of +1.6% as there was a rise in the Chinese GDP by 1.8% (QoQ).

China’s Gross Domestic Product

Recently in China, the Gross Domestic Product (GDP) for Q2 2018 was released by the National Bureau of Statistics of China. The market was positioned for a rise in the GDP by 1.6% in Q2 2018 compared with the previous quarter.

 

The actual result was above the forecast of +1.6% as there was a rise in the Chinese GDP by 1.8%. Considering the yearly change, there was a rise of 6.7% in the GDP, which was in line with the forecast, but less than the last reading of +6.8%.

 

The AUD/USD pair is placed in a bullish zone, but it has to break the 0.7430-35 resistance zone to accelerate gains in the near term.

 

AUD/USD Technical Analysis

The Aussie Dollar started a decent upside move from the 0.7360 low against the US Dollar. The AUD/USD pair traded above the 0.7400 level to move into a bullish zone. An intermediate low was formed at 0.7367 and the pair is currently trading above the 100 hourly simple moving average.

 

AUD/USD Technical Analysis Aussie Dollar US Dollar

 

The recent upside move faced a strong resistance near the 0.7435 level. There is also a major bearish trend line formed with resistance near 0.7430 on the hourly chart of the AUD/USD pair. The pair is currently correcting lower and it already broke the 23.6% Fib retracement level of the last wave from the 0.7367 low to 0.7435 high.

 

However, there are many supports on the downside, starting with 0.7410 and the 100 hourly SMA. Below this, the 0.7400 level is a key support along with the 50% Fib retracement level of the last wave from the 0.7367 low to 0.7435 high.

 

As long as the pair is above the 0.7400 support area, it could make an upside move above 0.7430 resistance in the near term. If not, it could retest the 0.7365 low.


Also published on Medium.

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