AUD/USD Forecast – Aussie Dollar Facing Tough Challenge Vs US Dollar
- – The Aussie Dollar recovered recently and tested a key resistance at 0.7410 against the US Dollar.
- – There was a break above a major bearish trend line with resistance at 0.7370 on the hourly chart of the AUD/USD pair.
- – Recently in Australia, the TD Securities Inflation report for July 2018 was released by The University of Melbourne – Faculty of Economics and Commerce.
- – The outcome was above the forecast of 0% (MoM) as there was a rise in the TD Securities Inflation by 0.1%.
Australia’s TD Securities Inflation
Recently in Australia, the TD Securities Inflation report for July 2018 was released by The University of Melbourne – Faculty of Economics and Commerce. The market was positioned for no change in the TD Securities Inflation compared with the previous month.
The actual result was above the forecast of 0% (MoM) as there was a rise in the TD Securities Inflation by 0.1%. Looking at the yearly change, there was a rise of 2%, similar to the last reading.
The AUD/USD pair is currently struggling to move above the 0.7400 and 0.7410 resistance levels, which could result in a downside move.
AUD/USD Technical Analysis
The Aussie Dollar formed a decent support near the 0.7345 level against the US Dollar. The AUD/USD pair started an upside move and traded above the 0.7360 and 0.7380 resistance levels to settle above the 100 hourly simple moving average.
The pair even broke the 50% Fib retracement level of the last decline from the 0.7440 high to 0.7348 low. Moreover, there was a break above a major bearish trend line with resistance at 0.7370 on the hourly chart of the AUD/USD pair.
However, the pair struggled to clear the 0.7400 and 0.7410 resistance levels. There was also no close above the 61.8% Fib retracement level of the last decline from the 0.7440 high to 0.7348 low.
At the moment, the pair is struggling to close above the 100 hourly SMA, and is trading near the 0.7395 level. It seems like the pair may correct lower towards the broken resistance at 0.7375. Dips in AUD/USD remains supported near 0.7375 and 0.7360, but it has to break the 0.7400 barrier for more gains.
Also published on Medium.
