AUD/USD Forecast – Can Aussie Dollar Correct Higher Vs US Dollar?

AUD/USD Forecast – Can Aussie Dollar Correct Higher Vs US Dollar?

  • – The Aussie Dollar declined heavily and traded towards the 0.7250 support against the US Dollar.
  • – Later, there was a break above a key bearish trend line with resistance at 0.7270 on the hourly chart of the AUD/USD pair.
  • – Recently in Australia, the National Australia Bank Business Confidence for July 2018 was released.
  • – The outcome was above the forecast of 6 as there was a rise in the confidence index to 7.

Australia’s National Australia Bank Business Confidence

Recently in Australia, the National Australia Bank Business Confidence for July 2018 was released. The market was positioned for no change in the National Australia Bank Business Confidence Index from the last reading of 6.

 

The actual result was above the forecast of 6 as there was a rise in the confidence index to 7. However, the National Australia Bank Business Conditions index posted a decline from the last reading of 15 to 12, whereas the market was looking for no change.

 

The AUD/USD pair is consolidating above the 0.7250 support area and it could correct higher towards 0.7300-0.7320 in the near term.

 

AUD/USD Technical Analysis

The Aussie Dollar was under a lot of pressure this past week after forming a top near the 0.7410 level against the US Dollar. The AUD/USD pair declined heavily, broke the 0.7350, 0.7320 and 0.7280 support levels, and also settled below the 100 hourly simple moving average.

 

AUD/USD Technical Analysis Aussie Dollar US Dollar

 

The pair found support above the 0.7250 level and it later started consolidating losses. It broke a key bearish trend line with resistance at 0.7270 on the hourly chart. However, there was no momentum above the 0.7290-0.7300 zone.

 

An initial resistance is the 23.6% Fib retracement level of the last decline from the 0.7452 high to 0.7256 low. A push above the 0.7310-20 zone could open the doors for a larger upward move towards the 0.7350 level and the 50% Fib retracement level of the last decline from the 0.7452 high to 0.7256 low.

 

On the other hand, if the pair fails to hold the 0.7250-55 support area, it may perhaps decline towards the 0.7220 support level in the near term.


Also published on Medium.

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